Moody’s Investors Service assigned a Baa3 rating to the senior secured notes worth USD 1.2 billion issued by the Adani Green Energy Hybrid Restricted Group (RG-3). This Friday announcement is quite crucial for the organisation as it marks a major step toward prudent management of its financial responsibilities.
The newly formed RG-3 consists of four wholly-owned subsidiaries of Adani Green Energy Ltd: Adani Hybrid Energy Jaisalmer One Limited, Adani Hybrid Energy Jaisalmer Two Limited, Adani Hybrid Energy Jaisalmer Four Limited, and Adani Solar Energy Jaisalmer One Private Limited. This restricted group will issue senior secured notes over a term of 20 years, thereby confirming a long-term strategy for fundraising.
Moody’s stated that in the rating to Adani Green energy, each of these subsidiaries will act as an issuer for part of the notes and as a guarantor for the remaining amount. The net proceeds from this offering will primarily be used to refinance a portion of the existing senior debt worth USD 1.3 billion relating to the restricted subsidiaries. RG-3 also intends to pay off the outstanding amount using its cash balances and other available financial resources.
Speaking on behalf of Moody’s, Spencer Ng, Vice President, and Senior Credit Officer, explained the rationale behind the Baa3 rating: “The rating reflects, overall, the credit quality of the restricted subsidiaries of RG-3, supported by stable and predictable revenue streams derived from a diversified portfolio of projects.” These projects have entered into long-term power purchase agreements with utilities connected to the central government, as well as with Adani Electricity Mumbai Limited, which boasts a Baa3 rating with a stable outlook.
This strategic step further reinforces the financial position of Adani Green Energy, while at the same time underlining its dedication to sustainable energy solutions for the developing Indian market. The rating is expected to enhance investor confidence and support future growth initiatives.
