Adani Green Energy raises $2 billion through international bonds and loans to boost its renewable energy expansion. This move shows the company’s strategy to secure long-term funding for its ambitious green energy plans.
Adani Green Energy’s $600 million bond issue
Adani Green Energy plans to issue $600 million in bonds soon. Last month, the company delayed a $1.2 billion bond due to investor concerns over geopolitical risks. The initial bond offered a 7 percent fixed coupon for 20 years. However, the updated proposal reflects the recent rise in global yields, including the higher 10-year US Treasury rate.
Funds support Adani Green Energy subsidiaries
Adani Green Energy will use part of the funds for three subsidiaries in Rajasthan involved in wind and solar projects. The company plans to secure private placement for another subsidiary with a long-term deal finalised by early 2025. This step helps shift from short-term loans to more stable 20-year debt.
Expanding Adani Green Energy’s renewable capacity
Some of the funds will support the Khavda solar project, the largest renewable energy park globally. By September 2024, 2.2 GW of its 30 GW capacity had become operational. Besides the bond issue, Adani Green Energy plans to secure additional financing through two tranches of $300 million and $550 million in construction loans in the next two months.
Adani Green Energy reports strong growth and plans
Adani Green Energy reported an operational capacity of 11.18 GW. It aims to reach 50 GW by 2030. In Q2 FY2024, revenue grew 20 percent year-on-year to Rs 2,309 crore, and net profit increased 39 percent to Rs 416 crore. The company recently added 2,868 MW, including 2,000 MW of solar and 450 MW of wind projects.
Adani Green Energy’s $2 billion funding highlights its commitment to supporting India’s renewable energy goals and achieving significant growth in sustainable energy.
