The move follows the announcement in January of a plan to redeem $750 million worth of notes, eight months ahead of the redemption date.
The three-year Holdco bonds, issued in September 2021, supported AGEL’s high-growth objectives. During the period, AGEL’s capacity more than tripled from 3.5 gigawatts (GW) to 11.2 GW, recording a CAGR (compound annual growth rate) of 48 percent.
The company had announced in January that it would pay $169 million from its internal reserves and provisions, and $300 million from the consideration of a joint venture with TotalEnergies Renewables. The remaining $281 million would come from the initial tranche of a preferential issue of warrants.
The financing was completed with the receipt of funds under the preferential allotment of Rs 9,350 crore (USD 1.12 billion) to the promoters of the company.
“AGEL’s overall capital management philosophy has been focused on long-term value creation through asset development and has positioned AGEL as a self-propelled growth engine. It also emphasizes the structured approach to achieve investment grade profile-like credit metrics for its underlying debt capital raising program,” the firm said in Monday’s statement. With this, AGEL is committed to having capital market issuances tailored to long-term infrastructure asset classes supported by predictable and robust cash flow to achieve a long curve that emulates the life of the underlying asset. “Over the years, the Capital Management Plan has matured to enable AGEL to have a ‘seasoned’ portfolio with a superior operating asset base supporting under-construction development. With surplus cash from operating assets augmenting the requirement of under-construction projects, AGEL’s overall capital expenditure program remains fully funded from such operating asset cash flows and the available construction facility fund,” it said.
Furthermore, the promoters of AGEL had, in December 2023, agreed to subscribe to a preferential guarantee for an amount of Rs 9,350 crore, of which Rs 7,013 crore (equivalent to USD 835 million) will be made available to AGEL to fund any accelerated capital expenditure requirements.
“AGEL thanks its investors and lenders for their trust and its supplier partners, including Adani Infra (India) Ltd and Adani Infra Management Services Ltd, for their continued support in achieving the accelerated growth plan, putting AGEL on track to achieve 50 GW of renewable energy capacity by 2030,” it added.
AGEL is India’s largest renewable energy company and develops, owns and operates large-scale hydro, hybrid, wind, solar and grid-connected storage renewable power plants.
AGEL currently has an operational renewable portfolio of 11.2 GW, the largest in India, spread across 12 states.
The company has set a target of reaching 50 GW by 2030, in line with India’s decarbonisation goals.
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