Adani Green refinances $1 billion loan for hybrid project in Rajasthan
Revitalizing the path forward for sustainable energy
In a significant development, Adani Green Energy (AGEL) has successfully refinanced a $1.06 billion maiden construction facility for its solar-wind hybrid renewable cluster in Rajasthan. This momentous occasion marks a major milestone in the company’s journey towards a cleaner and more sustainable future.
The Refinancing Initiative
The refinancing of the $1.06 billion loan is a testament to AGEL’s commitment to securing long-term financing for its renewable energy projects. The company has taken a strategic decision to refinance the outstanding loan taken in 2021 to develop India’s largest solar-wind hybrid renewable cluster in Rajasthan. The refinancing facility has a door-to-door tenor of 19 years, with a fully amortized debt structure emulating the underlying asset life.
Unlocking the Power of Renewable Energy
AGEL, with its operating renewable portfolio of 12.2 GW, the largest in India, has set a target of achieving 50 GW by 2030. The company has made tremendous progress in recent times, surpassing a record 12,000 megawatts (MW) of operational portfolio. This achievement makes AGEL the first and only renewable energy company in India to reach this landmark.
The Viability of the Refinancing Facility
Industry sources indicate that Power Finance Corporation has refinanced the loan for a tenure of 19 years. The refinancing facility has received an AA+/Stable rating from three domestic rating agencies: ICRA, India Ratings, and CareEdge Ratings. The funding cost for the refinancing facility is estimated to be around 9.2% in rupee terms, with a potential 25 bp coupon step-down when securing onshore issue rating.
The Future of Renewable Energy
As the world inches closer to a low-carbon future, renewable energy is fast becoming a critical component of the global energy mix. AGEL’s commitment to refining its financing structure for its solar-wind hybrid renewable cluster in Rajasthan is a defining moment for the company and the industry as a whole. The refinancing facility will enable AGEL to continue its mission of creating a more sustainable energy landscape, not just in India but globally.
Conclusion
In conclusion, Adani Green Energy’s successful refinancing of $1 billion loan for its solar-wind hybrid renewable cluster in Rajasthan is a significant development in the company’s journey towards a cleaner and more sustainable future. With its operating renewable portfolio of 12.2 GW, AGEL is poised to play a leading role in the transformation of the global energy landscape. As the world continues to grapple with the challenges of climate change, AGEL’s commitment to renewable energy is a beacon of hope for a brighter, more sustainable tomorrow.
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