Adani Green Energy Redeems $750 Million Holdco Notes, Plans ₹2 Lakh Crore Investment to Expand Renewable Energy Capacity

Adani Green Energy Limited (AGEL) has fully redeemed its $750 million Holdco notes due on September 8, 2024. The 4.375% notes were initially issued in September 2021 to support the company’s growth objectives and were redeemed eight months ahead of their maturity. AGEL had previously announced in January 2024 its intention to redeem the notes early.

Cash Redemption of Notes

The three-year Holdco notes played a critical role in AGEL’s rapid expansion. Over the period, the company’s capacity grew more than threefold, increasing from 3.5 GW to 11.2 GW, with an impressive compound annual growth rate (CAGR) of 48%. Rather than refinancing the notes, AGEL opted to redeem them using cash, a decision aligned with its strategic goals for accelerated growth. The company stated in an exchange filing, “Now that AGEL has presented an ambitious growth plan, it is redeeming the notes in cash rather than opting for refinancing.”

Investment Plans and Renewable Energy Expansion

Adani Green Energy is India’s largest renewable energy company, specializing in utility-scale grid-connected solar, wind, hybrid, and hydro-pumped storage plants. The company has announced plans to invest ₹2 lakh crore over the next seven years to increase its renewable energy capacity to 50 GW by 2030. AGEL already has a land bank of 70-80 GW to support this massive expansion.

Currently, the company operates projects with a combined capacity of 10.9 GW, generating ₹5,000 crore in cash flow. By next year, AGEL’s capacity is expected to increase to 17,000 MW, which will further boost cash flow. According to AGEL’s Chief Financial Officer Phuntsok Wangyal, “Funding for expansion will never be a challenge for the company, given its strong cash flow generation from existing operations.”

Promoters’ Commitment

In December 2023, AGEL’s promoters subscribed to ₹9,350 crore worth of preferential warrants, of which ₹7,013 crore has been allocated to meet any immediate capital expenditure needs. This capital injection further supports AGEL’s ambitious expansion plans and strengthens its financial position.

Conclusion

Adani Green Energy’s early redemption of $750 million Holdco notes and its ambitious investment plan highlight the company’s commitment to expanding India’s renewable energy infrastructure. With a clear focus on growth and financial discipline, AGEL is well-positioned to achieve its target of 50 GW renewable energy capacity by 2030, solidifying its leadership in the renewable energy sector.

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