Adani Green Energy (AGEL), through its subsidiary Adani Solar Energy AP Six, has raised a yen-denominated facility to refinance its existing indebtedness. The facility includes a ¥27.954 million (equivalent to about US$200 million) amortizing loan for a project 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.
The project loan facility is supported by AGEL’s strong relationship with its two main relationship banks – MUFG Bank and Sumitomo Mitsui Banking Corporation with equal participation. The facility is also a testament to AGEL’s strong relationship with its core banking partners, creating an appetite for large scale and long-term maturity through the development of market instruments leveraging liquidity and expanding access to fundraising.
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 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. The facility follows the principles of investment grade credit benchmarks that have a life cycle leverage profile (measured by debt to EBITDA) of c. 3x covering the main tenor of the PPA.
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