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.

Next Story
Infrastructure Transport

BMC Gets CRZ Nod For Rs 40 Million Gorai Bridge Rebuild

The Brihanmumbai Municipal Corporation (BMC) has secured Coastal Regulation Zone (CRZ) clearance for the reconstruction of the Poisar River bridge in Gorai, located in Mumbai’s western suburbs. However, the proposed demolition of the existing 100-metre bridge has sparked opposition from local residents, who claim it serves as the only direct access route between the Lower and Upper Koliwada areas. The three-decade-old bridge, situated within the CRZ buffer zone, was recently declared structurally unsafe following a civic audit. The BMC has sanctioned its reconstruction at an estimated cost ..

Next Story
Infrastructure Transport

NHAI Completes Rs 15.9 Billion Four-Lane Stretch On ECR

The National Highways Authority of India (NHAI) has completed the four-laning of the 38 km Puducherry–Poondiyankuppam stretch, ending near Cuddalore, in a development that will cut travel time by up to two hours, according to a report by The New Indian Express. The upgraded section, built at a cost of Rs 15.9 billion under the Bharatmala Pariyojana Phase I, marks a major milestone in the ongoing East Coast Road (ECR) widening programme. The project promises a smoother, faster drive for motorists travelling towards Cuddalore, Chidambaram, Sirkazhi, and Nagapattinam. With this completion, 22..

Next Story
Infrastructure Transport

Encroachments Delay Rs 1 Billion Ghatkopar Bridge Project

The construction of a new cable-stayed rail overbridge at Ghatkopar and the widening of the Andheri–Ghatkopar Link Road (AGLR) have been delayed due to the presence of nearly 250 encroached structures on both sides of the road. In response, Municipal Commissioner Bhushan Gagrani has directed officials to carry out a structural audit of the existing bridge over the railway line and enforce temporary restrictions on heavy vehicles to ensure public safety. The bridge, which starts at the Golibar Road junction near LBS Marg and extends up to the Eastern Express Highway (EEH), serves as a critic..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?