Adani Green Energy (AGEL), the renewable energy arm of Adani Group, has proposed to repay $750 million bonds on its due date itself. The payment of the secure senior notes, with a coupon rate of 4.375%, is due on September 8, 2024.
The company has asked the underwriters of the bond to provide a funding letter for $675 million and will use equity transaction proceeds to build up the repayment sum, AGEL said in a filing with Singapore Stock Exchange.
AGEL currently has restricted reserves equivalent of $75.47 million and is expecting an additional hedge reserve of $51.24 million. So, the funds required for the repayment are about $624 million, it added.
As per the terms, the Singapore-listed bond require the company to come up with a refinancing plan nine months before maturity.
The company had approached the market with the three-year bullet senior secured debt of $750 million in September 2021 to fund the capex of some of its under-construction projects. As of November 30, 2023, AGEL has an operational capacity of 8,404 MW.
“AGEL has always performed better than the covenanted threshold despite of any situation, either it is the Russia-Ukraine war or recent US banking crisis,” it added.
Earlier on December 5, AGEL raised a follow-on funding of $1.36 billion from eight global banks, increasing the total size of its Construction Financing Framework pool to $3 billion.
The loan facility will be key for the firm to develop a 2,167 MW renewable energy park at Khavda in Gujarat. It will also enable AGEL achieve 45 GW operating renewable capacity by 2030.