On Monday, Adani Green Energy Ltd. (AGEL) announced that it has successfully redeemed all of the outstanding 4.375 percent of 750 million dollar Holdco Notes through a redemption reserve account that is fully funded.
A redemption reserve account will be maintained eight months prior to the redemption date by the Adani Group company, which announced in January that it will fully backstop the Holdco Notes. This will enable the Holdco Notes to be fully redeemed upon maturity in accordance with applicable guidelines.
AGEL said in a statement that the three-year Holdco Notes, issued in September 2021, have supported its high-growth goals.
AGEL’s rapid expansion was intended to be financed by the Holdco Notes. AGEL’s capacity increased over three times during that period, from 3.5 GW to 11.2 GW, representing a 48 percent compound annual growth rate. “Now that AGEL has delivered the accelerated growth plan, it is redeeming the notes through cash rather than refinancing,” said the company.
“The entire capital program to reach 50 GW capacity by FY30 is fully funded by the construction facility framework agreement and the strong cash flows of operating assets,” it noted.
AGEL’s overall capital expenditure program is still fully funded by the cash flows from these operating assets and the pool of construction facilities that is available, with the excess cash from these assets supplementing the requirements of the under-construction projects.
Additionally, in December 2023, AGEL’s promoters decided to subscribe for a ₹9,350 crore preferential warrant, of which₹ 7,013 crore (roughly $835 million) will be made available to AGEL to cover any requirements for accelerated capital expenditures.
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