Adani Green Energy unveils $ 750 mn Holdco Bond Redemption Plan

10 Jan 2024 CW Team

According to information, the company had initiated plans to repay the $ 750 million 4.375 notes (Holdco Notes) scheduled for maturity on September 9, 2024. In September 2023, the company announced that the bond's underwriters would furnish a funding letter for $ 675 million and detailed $ 75.47 million in restricted reserves.

The redemption strategy outlined for the Holdco Notes encompasses various components:

1. Amounts in the reserve accounts and internal accruals: $ 169 million, covering the debt service reserve account, hedge reserves, and interest on reserve account.

2. TotalEnergies 1,050 MW JV Consideration: $ 300 million, involving a transaction that was already concluded on December 26, 2023, with the funds held in the senior debt redemption account (SDRA) of the Holdco notes.

3. Proceeds from the initial tranche of the promoter preferential allotment: Approximately $ 281 million, expected to be received by the end of January 2024, with the funds designated for deposit into the SDRA of the Holdco notes.

AGEL's objective in implementing this redemption plan is to ensure the complete security of the entire $750 million Holdco Notes, achieving this milestone eight months before the scheduled maturity date.

The company accomplished this goal by raising a total of $1.425 billion, comprising $1.125 billion from a preferential issuance by promoters and $300 million from the TotalEnergies JV through an equity capital raise program.

AGEL emphasised that this strategic move reflects the profound interest of long-term investors and strategic partners, along with the unwavering commitment of the promoters to meet AGEL's strategic priorities, particularly the target of achieving 45 GW by 2030.

Adani Green Energy (AGEL) revealed its intention to completely redeem its $ 750 million bond set to mature in September, with the aim of boosting investor confidence amidst recent market challenges. To secure the outstanding amounts of these notes, the company plans to utilise cash balances allocated in various reserve accounts, ensuring complete security eight months before the maturity date. According to information, the company had initiated plans to repay the $ 750 million 4.375 notes (Holdco Notes) scheduled for maturity on September 9, 2024. In September 2023, the company announced that the bond's underwriters would furnish a funding letter for $ 675 million and detailed $ 75.47 million in restricted reserves. The redemption strategy outlined for the Holdco Notes encompasses various components: 1. Amounts in the reserve accounts and internal accruals: $ 169 million, covering the debt service reserve account, hedge reserves, and interest on reserve account. 2. TotalEnergies 1,050 MW JV Consideration: $ 300 million, involving a transaction that was already concluded on December 26, 2023, with the funds held in the senior debt redemption account (SDRA) of the Holdco notes. 3. Proceeds from the initial tranche of the promoter preferential allotment: Approximately $ 281 million, expected to be received by the end of January 2024, with the funds designated for deposit into the SDRA of the Holdco notes. AGEL's objective in implementing this redemption plan is to ensure the complete security of the entire $750 million Holdco Notes, achieving this milestone eight months before the scheduled maturity date. The company accomplished this goal by raising a total of $1.425 billion, comprising $1.125 billion from a preferential issuance by promoters and $300 million from the TotalEnergies JV through an equity capital raise program. AGEL emphasised that this strategic move reflects the profound interest of long-term investors and strategic partners, along with the unwavering commitment of the promoters to meet AGEL's strategic priorities, particularly the target of achieving 45 GW by 2030.