Adani Green Energy is reportedly in advanced talks to secure a $400 million loan as it plans to hit its ambitious target of a 25-gigawatt portfolio by 2025. It is in discussions with Rabobank, MUFG, SMBC, and DBS for funding. The loan, having a five-year tenure, is likely to come with a pricing structure of secured overnight financing rate (SOFR) plus 250 basis points.
According to a report by the Economic Times, Adani Group's renewable energy arm is planning to use this loan for capital expenses. The company is also gearing up to issue a $1.3 billion bond after the general elections. This comes after the Adani Green became the first entity under the group to raise funds through a dollar note sale, post the damning Hindenburg report, released last year. The issue was oversubscribed nearly seven times.
"Adani Green had raised $409 million through an 18-year senior secured green bond, which garnered significant investor interest and was oversubscribed seven times. Now, the company is preparing to launch a larger bond issuance, capitalising on the strong investor demand," sources cited in the report said.
"The new fundraising will happen under 144 Reg S and could commence after the ongoing elections."
Adani Green Energy's operational portfolio includes 7,393 MW of solar capacity, 1,401 MW of wind capacity, and 2,140 MW of wind-solar hybrid capacity. The company is in the process of developing a massive renewable energy project spanning 30,000 MW on 538 square kilometers of barren land in Khavda, Kutch, Gujarat.
It has also secured projects totaling 21.8 GW and boasts the largest operating renewable portfolio in India, spanning nearly 10.9 GW across 12 states.
