Adani Green Delivers Cash Backed Redemption Plan For USD 750 Million Holdco Bond, Shares Close Tad Higher

Shares of Adani Green Energy Ltd (AGEL) closed 0.45% higher at Rs 1681.30 per share on Monday (January 8) after the renewable energy firm announced the redemption plan for a $750 million Holdco Bond due on September 9, 2024. The move is to expected help bolster investor's confidence in the Adani group firm.

With this, AGEL has fully defeased the Holdco Notes, eight months prior to the maturity date, and has further resulted in significant deleveraging in AGEL by way of equity proceeds while continuing to deliver on the growth plans. In an exchange filing on Monday, the company said, "The outstanding amounts of the Holdco Notes shall be fully secured through cash balances set aside as part of various reserve accounts securing the Holdco Notes, eight months prior to the maturity."

According to the company, AGEL has delivered USD 1.4 bn equity raising and USD 1.6 bn of debt for ringfenced project SPVs from international banks, demonstrating strong market access at attractive pricing, enabling AGEL to achieve its target of 45 GW by 2030.

The redemption plan for the Holdco Notes included

1. Amounts in the Reserve Accounts and Internal Accruals - USD 169 million (including Debt Service Reserve Account, Hedge Reserves & Interest on Reserve Account).
2. TotalEnergies 1,050 MW JV Consideration - USD 300 million, the transaction closed on 26 December 2023, and the funds are already lying in the Senior Debt Redemption Account (SDRA) of the Holdco notes.
3. Proceeds from the Initial tranche of the Promoter Preferential Allotment - ~USD 281 million, (USD equivalent of INR 2,338 crores), expected at the end of January 2024, and the funds shall be deposited into the Senior Debt Redemption Account (SDRA) of the Holdco notes.
4. Total amount - USD 750 million

Adani Green Energy Share price performance:

In the last one week, Adani Green Energy shares have gained 5.19%. The last six months have increased 76.81%. In the last one year, the stock has fallen 8.55%. The last two years and last three years returns from shares of Adani Green Energy have increased by 18.19% and 65.66%.

Performance of other Adani group stocks today (January 8, 2024):

On Monday, Adani group stocks closed mixed. The share price of Adani Enterprises closed 1.44% lower at Rs 2963.55 per share, Adani Ports shares ended 1.27% higher at Rs 1168.70 per share, and Adani Total Gas shares closed 2% lower at Rs 1068 per share.

The Indian equity market closed lower today. At market close, the NSE Nifty 50 slipped 0.91% at 21,513 points, while the BSE Sensex closed 0.93% lower to 71,355.22 points.

About Adani Green Energy Limited (AGEL)

Adani Green Energy Limited (AGEL) is India's largest and world's leading renewable energy solutions partner enabling the clean energy transition. AGEL develops, owns, and operates utility-scale grid-connected solar, wind and hybrid renewable power plants. With a locked-in growth trajectory up to 20.6 Gigawatt (GW), AGEL currently has an operating renewable portfolio of 8.4 GW, the largest in India, spread across 12 states, offsetting over 41 million tonnes of CO2 emissions cumulatively.

AGEL is credited with developing several landmark renewable energy power plants, the latest being the world's largest wind-solar hybrid power cluster of 2,140 Megawatt (MW) in Jaisalmer, Rajasthan. The company has set a target of achieving 45 GW by 2030 aligned to India's decarbonization goals.