Adani Green Energy, a part of Gautam Adani's Adani Group, is actively involved in green energy projects. According to a report by the Economic Times, the company is in advanced talks with Rabobank, MUFG, SMBC, and DBS to secure a massive loan of Rs 3,333 crore. The funds from this loan are intended for capital expenditure.
The loan is likely to be priced at a secured overnight financing rate (SOFR) plus 250 basis points with a five-year tenor.
Additionally, Adani Green Energy plans to invest a total of ₹9,350 crore in its green unit. Half of the warrant proceeds (₹4,675 crore) will be used to repay loans and bonds, while the remaining balance will go towards renewable projects and ongoing expenses.
Furthermore, there are reports that Adani Green Energy is seeking an offshore loan of $400 million for its upcoming renewable projects. The Adani Group as a whole aims to invest about ₹2.3 lakh crore through 2030 in the country's renewable energy expansion and solar and wind manufacturing capacity.
Adani Green Energy plans to significantly expand its renewable energy capacity. This includes increasing the number of solar and wind power projects across India and potentially exploring other clean energy sources.
The involvement of international banks (Rabobank, MUFG, SMBC, and DBS) indicates potential strategic partnerships. These banks may offer expertise, global networks, and access to international markets.
Adani Green Energy has secured several significant loans in the past to support its renewable energy projects. Last year in December, Adani Green Energy obtained a massive $1.4 billion loan to finance the establishment of the world's largest renewable energy park.
Recently, in last month only, Adani Green Energy raised $409 million through an 18-year senior secured green bond. The bond garnered significant investor interest and was oversubscribed seven times. The company used the proceeds from this bond issuance to refinance its existing five-year bullet of $500 million senior secured notes due in 2024.
The successful bond issuance showed signs of investor confidence in Adani Green Energy.
Overall, the loans provided Adani Green Energy with the means to execute their strategic plans, manage debt, and position themselves as a major player in the green energy sector
Advertisements