India's Adani Group subsidiary, Adani Green Energy Limited (AGEL) has secured a green loan of $400 million to develop its 750 MW solar project portfolio in Rajasthan and Gujarat.
AGEL says this portfolio of projects is currently under construction in Rajasthan and Gujarat. It comprises a solar power plant with 500 MW capacity under a long-term power purchase agreement (PPA) with the Solar Energy Corporation of India (SECI).
The proceeds will also advance the other project with 250 MW capacity, a standalone merchant power project located at what AGEL says is the world's largest renewable energy cluster at Khavda in Gujarat.
In December 2023, AGEL secured a green loan to build 2.167 GW at its 17 GW renewable energy park at Khavda, from an 8-bank consortium (see $1.36 billion For World's Largest RE Park In India).
About the financing, AGEL said, "It marks a milestone for the Indian RE sector as it steers the industry's transition to the next phase of market integration, with the commitment to deliver the low-cost green electrons through promotion of merchant market projects with right financing structure demonstrating overall trust and competitiveness for the Indian renewable energy sector to drive clean energy transition and decarbonisation."
It has raised this financing from a consortium of 5 international banks, namely Cooperative Rabobank U.A., DBS Bank Ltd., Intesa Sanpaolo S.p.A., MUFG Bank, Ltd., and Sumitomo Mitsui Banking Corporation.
The company currently has a 10.9 GW operational portfolio comprising 7.4 GW solar, 1.4 GW wind and 2.14 GW wind-solar hybrid capacity.