NEW DELHI: Adani Green Energy Ltd. said on Thursday that it has raised nearly $200 million through its subsidiary Adani Solar Energy AP Six to refinance existing debt.
The funds will be used to refinance a 350 MW solar project in Andhra Pradesh.
“The facility includes ¥27,954 million in project loan amortization, valuing the 16-year debt structure with a door-to-door term of 10 years and an average term of more than 8 years,” the company said in a statement.
The project credit facility is supported by MUFG Bank and Sumitomo Mitsui Banking Corp. with equal participation, the company said in a statement. Latham & Watkins LLP and Cyril Amarchand Mangaldas acted as legal advisors on the transaction.
The company added that the loan for the project is backed by its “strong” relationship with its two main relationship banks – MUFG Bank Ltd. and Sumitomo Mitsui Banking – with equal participation.
The facility is linked to the Tokyo Overnight Average Rate (TONA), a Japanese interest rate benchmark that yields close to zero, underscoring the attractiveness of expanding alternative capital pools providing relatively competitive interest rates.
The company is committed to accessing long-term capital without depleting its growth capital and will continue to seek multiple alternative pools of capital to have a sustainable financing solution to spearhead India’s energy transition.
The refinancing facility is in line with AGEL’s strategy of securing long-term financing, establishing a debt structure in line with the underlying asset life for its operating assets.
“This is an excellent result for AGEL, showing strong support from our lenders and demonstrating our ability to access bank debt on competitive terms in sync with the underlying asset development model to provide a long-term solution,” said Phuntsok Wangyal, CFO , Adani Green Energy.
“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, tighter margin and historically low swap rates, this provides significant flexibility and a competitively priced financing solution for AGEL’s high-quality portfolio of renewable assets.”
Adani Green Energy shares are trading at ₹2,110.45 apiece, down 0.29%.
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