The revolving project finance facility would initially finance the 1.69 GW hybrid portfolio of solar and wind renewable projects to be setup in four SPVs in the state of Rajasthan, India
Adani Green Energy Limited (AGEL) raised a $1.35 billion debt package for its under-construction renewable asset portfolio through definitive agreements signed with a group of leading international lenders. The revolving project finance facility would initially finance the 1.69 GW hybrid portfolio of solar and wind renewable projects to be setup in four SPVs in the state of Rajasthan, India.
“We see this as yet another validation of our execution ability in the renewable space. We are committed to producing the least expensive green electron and the pace and scale we have embarked on puts us well ahead on this path. We believe that establishing depth and diversity in our funding resources is critical for AGEL’s vision to become the largest renewable player in the world. The banks that have committed to this strategic transaction are our key partners in ensuring seamless access to global capital for our underlying renewable asset portfolio,” said Vneet Jaain, MD & CEO, AGEL.
He added, “The facility will also ensure capital recycling needs of the banks and make the same capital available for future projects of AGEL. This revolving nature of the facility will help AGEL to achieve its goal of a 25GW portfolio by 2025. In addition, it positions AGEL well to capture growth in the attractive Indian renewable sector.”
According to the agreement, 12 international banks – Standard Chartered Bank, Intesa Sanpaolo S.p.A, MUFG Bank, Sumitomo Mitsui Banking Corporation, Coöperatieve Rabobank U.A., DBS Bank Ltd., Mizuho Bank, Ltd., BNP Paribas, Barclays Bank PLC, Deutsche Bank AG, Siemens Bank GmbH and ING Bank N.V committed for the facility which will be the first certified green hybrid project loan in India. The new pool of liquidity strengthens AGEL’s strategy to fully fund its under-construction asset and augurs well for its vision of scaling capacity to 25 GW by 2025.
Standard Chartered Bank, acted as lead underwriter, Mandated Lead Arranger, Bookrunner (MLAB), environmental due diligence adviser, co-documentation bank and co-green loan coordinator for the facility. Likewise, MUFG Bank played the role of MLAB, technical bank, and co-green loan coordinator. Further, BNP Paribas acted as MLAB, co-documentation DBS Bank Ltd acted as MLAB, accounts bank and Mizuho was the MLAB, financial modelling bank. Intesa Sanpaolo S.p.A, Sumitomo Mitsui Banking Corporation, Coöperatieve Rabobank U.A, Barclays Bank PLC, Deutsche Bank AG, Siemens Bank GmbH and ING Bank N.V. acted as MLABs for the Facility.
Among other partners, while Latham & Watkins LLP and Luthra & Luthra were the borrower’s counsel, the lenders’ counsel were Linklaters and Cyril Amarchand Mangaldas. Tractebel Engineering Private Limited acted as the lender’s technical advisor, UL acted as the lenders energy yield assessment consultant, ERM acted as the lenders environmental & social consultant, Arcadis acted as the lenders environmental and social due diligence consultant, Deloitte acted as the financial model audit consultant, Marsh acted as the lenders’ insurance agent and KPMG acted as independent assurance provider for the Green Loan.
AGEL’s renewable portfolios consists of over 14,815 MW of operating, under-construction and awarded projects.
