Adani Green Energy plans to raises $2 billion through bonds and loans

 According to a report by Business Standard, Adani Green Energy intends to raise about $2 billion over the next few months through a combination of foreign bonds and loans.

In the coming days, the corporation plans to issue a bond for $600 million. It did this after delaying the issuing of $1.2 billion in bonds last month because investors wanted greater rates because of geopolitical uncertainty.

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The funds raised from the bond issuance will be used for three of Adani Green’s subsidiaries in Rajasthan, which are working on wind and solar energy projects. Meanwhile, the company is seeking private investment for its other subsidiary, with plans to finalize a 20-year deal by early 2025.

Adani Green had signed a $3.4 billion construction agreement with international banks, including DBS, Mizuho, SMBC, MUFG, and ING. The company is now shifting to bond markets to reduce its dependence on short-term loans and extend the maturity of its debt to 20 years. It also plans to increase the framework agreement to $5 billion to fund future projects.

Some of the raised funds will be used to expand operations at the Khavda solar project, which is considered the world’s largest renewable energy park. As of September 2024, 2.2 GW of its total 30 GW capacity has already been operational.

In addition to the bond issuance, Adani Green plans to secure two more rounds of construction financing—$300 million and $550 million—through bank loans over the next two months.

Adani Green currently has an operational renewable energy capacity of 11.18 GW and aims to reach 50 GW by 2030. The company saw strong growth in the second quarter of FY2024, with revenues rising 20% year-on-year to Rs 2,309 crore and net profit increasing 39% to Rs 416 crore. Recently, it added 2,868 MW to its portfolio, including 2,000 MW of solar and 450 MW of wind energy projects.

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