Adani Green Energy Ltd (AGEL) announced on Sept. 9 that it has fully redeemed its $750 million Holdco bonds. Issued in September 2021 with an interest rate of 4.375 percent, these bonds were originally due to mature on Sept. 8, 2024, according to the company’s statement.
Adani Green Energy share price was trading in the red, down 0.62 per cent, ₹979.35. On September 9th, at 9:39 am, the BSEThe company enjoys a market capitalization of ₹1,17,647.62 crores.
The bonds were introduced as part of AGEThe company’s ambitious expansion plan, which has helped finance its accelerated growth over the past three years, has enabled its energy capacity to triple from 3.5 GW to 11.2 GW, achieving an impressive compound annual growth rate (CAGR) of 48%.
In January 2024, AGEL announced that it had created a fully funded redemption reserve account to support the Holdco Notes. This account, which was maintained throughout the year, ensured that AGEL could meet its repayment obligations without the need for refinancing.
AGEL approach
The company’s approach to managing its capital has consistently focused on long-term value creation. “AGEL’s capital management philosophy is to position itself as a self-sustaining growth engine, emphasizing structured financial planning and credit metrics similar to investment grade profiles,” the company said.
AGEL’s capacity development efforts are fully funded through strong cash flows from its operating assets and a framework of construction facilities, supporting the company’s goal of achieving 50 GW by FY30.
In addition, the company’s promoters have played a crucial role in its financial strategy, committing to a preferred warrant worth ₹9,350 crore (equivalent to US$835 million) by December 2023. This financing further strengthens AGEL’s ability to accelerate its capital expenditure as required.
AGE expressed gratitude to its investors, lenders and supplier partners including Adani Infra (India) Ltd and Adani Infra Management Services Ltd, for their continued support. The company is now firmly on track to meet its target of 50 GW of renewable energy capacity by 2030, in line with India’s broader decarbonisation goals.
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