Adani Green Energy repays Holdco bonds worth over Rs 6,200 crore ahead of schedule

Adani Green Energy Ltd (AGEL) announced on September 9 that it has fully repaid its $750 million Holdco bonds. These bonds were issued in September 2021 at an interest rate of 4.375 percent and were originally scheduled to mature on September 8, 2024, according to the company statement.

Adani Green Energy’s share price was down 0.62 percent. ₹979.35 on September 9 at 9:39 am on the BSE. The company has a market capitalization of ₹1,176,476.2 crores.

The bonds were issued as part of AGEL’s ambitious expansion plan and helped finance the company’s accelerated growth over the past three years. During this period, the company’s energy capacity has more than tripled from 3.5 GW to 11.2 GW, achieving an impressive compound annual growth rate (CAGR) of 48 percent.

AGEL announced in January 2024 that it had established a fully funded redemption reserve account to back the Holdco Notes. This account, maintained throughout the year, ensured that AGEL could meet its redemption obligations without the need for refinancing.

AGEL approach

The company’s approach to managing its capital is consistently focused on long-term value creation. “AGEL’s capital management philosophy aims to position itself as a self-sustaining growth engine, with an emphasis on structured financial planning and credit metrics that resemble investment grade profiles,” the company said.

AGEL’s capacity building efforts will be fully funded by strong cash flows from operating assets and a construction asset framework that support the Company’s objective of achieving 50 GW by FY 2030.

In addition, the company’s promoters have played a crucial role in its financial strategy by committing to a preference warrant worth ₹9,350 crore (equivalent to USD 835 million) in December 2023. This financing further strengthens AGEL’s ability to accelerate its capital expenditure as required.

AGEL thanked its investors, lenders and supplier partners, including Adani Infra (India) Ltd and Adani Infra Management Services Ltd, for their continued support. The company is now firmly on track to achieve its target of 50 GW of renewable energy capacity by 2030, in line with India’s broader decarbonisation goals.