AGEL raises $400 mn for its solar power projects

Adani Green Energy (AGEL), India’s largest renewable energy firm, has raised $400 million in financing from a consortium of international lenders for its under-construction 750 megawatt (Mw) solar power projects in Rajasthan and Gujarat, the company said.

The Rajasthan project, with a capacity of 500 Mw, has a long-term power purchase agreement (PPA) with Solar Energy Corporation of India, while the 250 Mw Gujarat project is a standalone merchant power project being implemented at the world’s largest renewable energy cluster in Khavda, Gujarat.

The lenders — Cooperative Rabobank U.A., DBS Bank, Intesa Sanpaolo S.p.A., MUFG Bank, and Sumitomo Mitsui Banking Corporation — provided the debt facility.

AGEL shares closed at Rs 1,755 per share on Wednesday, with a total market valuation of Rs 2.78 trillion.

The company has announced an ambitious plan to invest Rs 1.3 trillion in 2024-25 to expand its capacity across its portfolio companies and will raise up to Rs 25,000 crore in equity this financial year to fund the projects.

Among its portfolio companies, AGEL plans to invest Rs 34,000 crore to expand its facilities at the Khavda site in Gujarat alone.

The construction facility of $400 million, along with funding solutions, also provides a syndicated guarantee-backed assurance program in sync with AGEL’s procurement strategy. The transaction paves the way for a sustainable debt structure developed as part of AGEL’s capital management plan for financing merchant exposure, the company said.

The green loan, housed under AGEL’s subsidiaries, supports the company’s growth trajectory and aligns with its commitment to sustainability.

AGEL already operates a portfolio of 10,934 Mw, comprising 7,393 Mw solar, 1,401 Mw wind, and 2,140 Mw wind-solar hybrid capacity.