Adani Green Energy Ltd (AGEL), the renewable energy division of the Adani Group, has successfully redeemed $750 million worth of bonds, advancing its strategy to reduce leverage. The company announced on Monday that it has completed the redemption of all outstanding $750 million 4.375% Holdco Notes, which were due on September 8, 2024.
This move follows its earlier plan, disclosed in January, to redeem these bonds eight months ahead of the scheduled date. The Holdco Notes, issued in September 2021, were instrumental in supporting AGEL’s rapid expansion.
Since then, Adani Green’s capacity has grown from 3.5 gigawatts (GW) to 11.2 GW, achieving a compounded annual growth rate (CAGR) of 48%. To fund the bond redemption, the company utilized $169 million from reserves and internal accruals, $300 million from a joint venture with Total Energies Renewables, and $281 million from the initial tranche of a preferential issue of warrants. This funding was bolstered by a preferential allotment of ₹9,350 crore ($1.12 billion) to the company’s promoters.
In its statement, AGEL highlighted its commitment to long-term value creation through strategic asset development and maintaining a credit profile akin to investment grade. The firm emphasized its focus on capital management tailored to long-term infrastructure assets, supported by predictable cash flows.
AGEL also noted that its capital management plan has evolved to support a “seasoned” portfolio with robust operational assets. The company’s capital expenditure program remains fully funded through cash flows from operational assets and available construction facilities.
Additionally, AGEL’s promoters agreed in December 2023 to subscribe to a preferential warrant totaling ₹9,350 crore, with ₹7,013 crore ($835 million) available to AGEL for accelerated capital expenditure needs. The company expressed gratitude to its investors, lenders, and vendor partners, including Adani Infra (India) Ltd and Adani Infra Management Services Ltd, for their support in achieving its accelerated growth objectives.
AGEL is on track to reach 50 GW of renewable energy capacity by 2030, reinforcing its position as India’s largest renewable energy company. Currently, AGEL operates the largest renewable portfolio in India, totaling 11.2 GW across 12 states, and aims to align its goals with India’s decarbonization targets.
