- Adani Green Energy Limited (AGEL) has raised $1.35 billion as project financing, calling it one among the largest project financing deals in Asia
- It has secured this funding from a group of international lenders to initially finance 1.69 GW solar and wind hybrid projects in Rajasthan
- AGEL added that this facility will ensure capital recycling needs of the banks and make it available for its future projects
The renewable energy arm of India’s fast growing Adani Group, Adani Green Energy Limited (AGEL) has raised a whopping $1.35 billion project financing from a group of 12 international banks to fund its renewable energy portfolio. The company says it is one among the largest project financing deals in Asia.
It will enable the company to initially finance a 1.69 GW hybrid portfolio of solar and wind energy projects in Rajasthan, all of which is currently under construction.
Management said this liquidity strengthens its ability to fully fund its under construction assets aligned with the target to achieve 25 GW capacity in its portfolio by 2025.
About the facility that’s key to ‘fully funding’ its growth aspirations, AGEL said the definitive agreement will enable it to engage with the financiers to raise financing ‘expeditiously’ for all its future projects that meet agreed threshold parameters.
AGEL identified the 12 lenders, for what it claims to be the 1st certified green hybrid project loan in India, as Standard Chartered Bank, Intesa Sanpaolo S.p.A, MUFG Bank, Sumitomo Mitsui Banking Corporation, Coöperatieve Rabobank U.A., DBS Bank Ltd., Mizuho Bank, Ltd., BNP Paribas, Barclays Bank PLC, Deutsche Bank AG, Siemens Bank GmbH and ING Bank N.V.
“The banks that have committed to this strategic transaction are our key partners in ensuring seamless access to global capital for our underlying renewable asset portfolio,” explained Vneet Jain, MD and CEO of AGEL. “The facility will also ensure capital recycling needs of the banks and make the same capital available for future projects of AGEL.”
Currently, AGEL’s operational, under construction and awarded project portfolio adds up to 14.815 GW. The big financing deal comes only few months after a Reuters report claimed in Nov. 2020 that Adani’s 8 GW solar project capacity deal with the Solar Energy Corporation of India (SECI) had no guaranteed offtakers, which could undermine investor and lender confidence (see India PV News Snippets: MCGM, RE-Invest 2020, EESL, Adani).
But then, French energy giant Total also invested $510 million to acquire 50% stake in AGEL’s 2 GW operational solar portfolio in February 2020 (see Total To Invest In Adani’s India Solar Portfolio).