Adani Green Energy Secures Funding of $750 Million Holdco Bond Redemption

Adani Green Energy Limited (AGEL) successfully concluded the funding for the redemption of a $750 million Holdco Bond on Monday. The green energy arm of the Adani conglomerate revealed that the funds were sourced from various channels, including TotalEnergies JV Proceeds ($300 million), promoters’ preferential allotment ($281 million), and the debt service reserve account, hedge reserves, and interest on reserve account ($169 million), according to a filing on BSE.

Earlier this month, AGEL had announced plans for the redemption of the $750 million Holdco notes as part of a strategy to boost investor confidence. The company had assured that the outstanding amounts of the Holdco Notes would be fully secured through cash balances set aside in various reserve accounts eight months before maturity.

Providing an update on Monday, Adani Green stated, “Concluded funding of entire $750 million Holdco Bond redemption resulting in significant deleveraging in AGEL by way of equity proceeds while continuing to deliver on the growth plans.”

The completion of funding was made possible through the receipt of funds under the preferential allotment of ₹9,350 crore ($1,125 million) to the promoters of Adani Green. Shareholders had approved this preferential allotment with 99% majority on January 18, following which the promoters infused ₹2,338 crore ($281 million) in primary capital into the company last week, as stated in an official statement.

AGEL confirmed that the funds have been set aside in the Senior Debt Redemption Account (SDRA) and other reserve accounts of the Holdco Notes, marking the completion of the reserves funding.

Adani Green Energy shares experienced a 3% uptick, reaching ₹1,712 on Monday morning. The company is scheduled to announce its December quarter results today.

In a related development, on January 19, Adani Green Energy had informed stock exchanges about its board of directors meeting scheduled for January 29, during which they would consider and approve the unaudited financial results for the quarter and nine months ending December 31, 2023.

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