+
Adani Green Energy unveils $ 750 mn Holdco Bond Redemption Plan
POWER & RENEWABLE ENERGY

Adani Green Energy unveils $ 750 mn Holdco Bond Redemption Plan

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.

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.

Related Stories

Gold Stories

Next Story
Real Estate

Kamdhenu Realities acquires 4-acre Navi Mumbai land parcel

Kamdhenu Realities has acquired a 4-acre land parcel from RPG Life Sciences on Thane-Belapur Road for approximately Rs 1.5 billion, expanding its commercial real estate portfolio in Navi Mumbai.The parcel has a total developable potential of 1.8 million sq ft, on which Kamdhenu plans to develop a destination-scale commercial and lifestyle ecosystem. The proposed development will combine corporate office suites with high-street retail, F&B outlets, double-height lobbies, business infrastructure and lifestyle amenities.Located close to IKEA and opposite the upcoming Pawane Railway Station, t..

Next Story
Infrastructure Transport

97 Per Cent Of Rongjeng-Mangsang-Adokgre Road Nears Completion

Deputy Chief Minister in-charge of public works Prestone Tynsong said in Shillong on 26 August that 97 per cent physical progress had been achieved on the ongoing Rongjeng-Mangsang-Adokgre road being constructed under the Non-Lapsable Central Pool of Resources (NLCPR). He noted the project was sanctioned in 2017 and that the stipulated time for completion had been 24 months from issue of the final work order. The deputy chief minister informed the assembly that the government had decided to include the remaining work under a World Bank project. In reply to a query from Rongjeng MLA Jim M Sangm..

Next Story
Infrastructure Transport

First TBM Starts Digging Five Point Three Kilometre Tunnel Under SGNP

The Goregaon-Mulund Link Road (GMLR) Phase three (B) project has reached a key milestone as the first tunnel boring machine (TBM) began excavation of the first of two tunnels beneath the Sanjay Gandhi National Park (SGNP). The machine, named Tulsi, started cutting a five point three kilometre bore that will link Dadasaheb Phalke Chitranagari in Goregaon East with Amar Nagar in Mulund West. Officials issued a statement noting the commencement of tunnelling work under the protected green belt. The twin tunnels are being constructed using mechanised tunnelling methods that aim to limit surface di..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code