Adani Green Energy is set to secure $5 billion via global bonds issuance

Adani Green Energy (AGEL), the renewable energy division of the Adani Group, plans to raise approximately $5 billion via global bonds to fund its envisioned 25 gigawatt (GW) capacity increase by 2030. The capital will be collected in stages, commencing this fiscal year and spanning several years. This strategy solely involves international bond issuance, bypassing share offerings, owing to the accessibility of cost-effective long-term capital and bullet payment options, according to insiders familiar with the matter.

Roadshows will be conducted this fiscal year in countries including the US, the UK, and Europe. Necessary approvals, both from shareholders and other avenues, will be obtained progressively as required. Presently, Adani Green Energy operates 8,316 megawatts of renewable energy capacity, with an additional 12,118 MW nearing completion. The aim is to amplify this to 45,000 MW by 2030, necessitating the annual construction of at least 3 GW of solar and wind capacity.

The company is also exploring new locations for wind projects and has installed wind masts in Gujarat and Madhya Pradesh. Its operational wind power capacity stands at 1,201 MW. Total Energies holds a 19.7% stake in AGEL, while GQG Partners recently acquired a 6.8% stake and Qatar Investment Authority (QIA) acquired 2.8%.

As of March 31, 2023, the Adani Group's debt totaled Rs 2.27 trillion, distributed among bonds, loans from international banks, and Indian banks/NBFCs. The group's asset value reached Rs 3.91 trillion.

With India targeting 500 GW of non-fossil-based installed power generation capacity and aiming for net zero emissions by 2070, AGEL's expansion aligns with the nation's ambitious energy goals.

Content source: Media reports