Thu Nov 21 03:15:32 UTC 2024: ## Adani Green Energy Secures $1.5 Billion in Overseas Bond Offering
**MUMBAI, INDIA** – Adani Green Energy Limited (AGEL) has successfully returned to the international bond market, securing a $1.5 billion, 20-year bond offering. The offering, comprised of partially amortized senior secured notes due in 2044, received a ‘BBB- (EXP)’ rating with a stable outlook from Fitch Ratings. The funds will be used to support AGEL’s 1140 MW portfolio of solar and hybrid power projects.
The company initially aimed to raise $1.2 billion last month but postponed the offering due to US dollar market volatility following the US elections. While the full $1.5 billion is planned, AGEL expects to raise approximately $500-600 million immediately. The company’s executive director, Sagar Adani, announced ambitious plans to invest $35 billion in renewable energy projects over the next five years, describing it as the largest greenfield development of its kind globally.
Fitch’s rating reflects the creditworthiness of AGEL Hybrid RG1, the entity operating the wind and solar assets in Rajasthan. The rating is based on the long-term power purchase agreements (PPAs) with the Solar Energy Corporation of India (SECI), proven technology, experienced contractors, and a strong financial profile. The agency highlighted the robust covenants and security package mitigating refinancing risks, including a 90% scheduled amortization over 20 years and restrictive covenants ensuring sufficient cash reserves to repay the debt. Fitch noted that the company’s financial profile surpasses what is typically associated with a ‘BBB-’ rating.
The notes include a 10.2% bullet payment at maturity, but the substantial amortization and covenants ensure sufficient funds for repayment. Distributions are prohibited from the 18th year unless a reserve fund is fully established to cover the bullet payment and accrued interest. Additional security comes from refinancing covenants and projected operating cash flow post-maturity.
First Piper 