Adani Green announces raising of yen denominated debt refinancing facility | News Bharat

Adani Green Energy Ltd (AGEL) said on Thursday it has raised a Japanese yen (JPY)-denominated facility to refinance its debt. The facility includes a ¥27.9 billion (US$200 million) amortizing project loan, valuing a 16-year debt structure with a door-to-door payment term of 10 years and an average term of more than 8 years, it said in a statement the company.

The fund was raised through AGEL’s subsidiary Adani Solar Energy AP Six Private Ltd. The project loan is supported by MUFG Bank and Sumitomo Mitsui Banking Corporation with equal participation.

The facility is linked to the Tokyo Overnight Average Rate (TONA), a Japanese interest rate benchmark that yields near zero, highlighting the attractiveness of expanding alternative capital pools providing relatively competitive interest rates, the company said.

“The company is committed to accessing long-term capital without depleting its growth capital and will continue to seek multiple alternative capital pools to have a sustainable financing solution to spearhead India’s energy transition,” it said the statement.

AGEL is one of the largest renewable energy companies in the country with 20 Gw of solar and wind power (installed and under construction).

“The facility demonstrates AGEL’s proactive and consistent approach to accessing liquidity against a challenging interest rate environment in the wider markets, providing a long-term solution. With a lower reference rate, lower margin and historically low swap rates, this provides significant flexibility and a competitively priced financing solution for AGEL’s high-quality renewable asset portfolio,” said Phuntsok Wangyal, Chief Financial Officer, AGEL.

MUFG Bank Ltd. and Sumitomo Mitsui Banking Corporation acted as lead lenders for the facility. Latham & Watkins LLP and Cyril Amarchand Mangaldas acted as legal advisors on the transaction.

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