India's Adani Green Raises USD288m for its renewable portfolio




Adani Green Energy Ltd (AGEL) has extended its Construction Financing Framework to USD 1.64 Bn by raising a USD 288 Mn facility for its under-construction renewable asset portfolio through definitive agreements signed with a group of leading international lenders. The facility will initially finance the 450 MW hybrid portfolio of solar and wind renewable projects that AGEL is setting up in Rajasthan, India. In March 2021, AGEL had closed a USD 1.35 Bn construction revolver facility in one of Asia’s largest project financing deals.


According to the definitive agreements, 7 international banks – BNP Paribas, Coöperatieve Rabobank U.A., Intesa Sanpaolo S.p.A., MUFG Bank, Ltd., Societe Generale, Standard Chartered Bank and Sumitomo Mitsui Banking Corporation – committed for the facility which is a certified green hybrid project loan. The extended pool of liquidity strengthens AGEL’s strategy to fast-track the development of its under-construction asset portfolio in sync with accelerating the energy transition.


“The construction facility is the key ingredient of AGEL’s capital management plan, enabling us to deliver on our focus on decarbonizing power generation” said Mr Vneet S Jaain, MD & CEO, AGEL. “We are committed to sustainable growth and to catalyzing energy transition. AGEL has set a target of achieving 45 GW renewable energy capacity by 2030, representing 10% of the Govt of India’s 450GW countrywide renewable energy target. Our development agenda is in sync with overall capital stewardship maintained through our capital management philosophy focused on sustainable growth.”


The Facility is also certified by Second Party Opinion provider ISS ESG based on AGEL’s sustainable strategy, alignment with Green Loan Principles and sustainability quality of the asset pool, with ‘very high’ transparency standards and significant contributions to SDG 7 (affordable and clean energy) and SDG 13 (climate action). As per the assessment, AGEL shows a high sustainability performance on key ESG issues in the Renewable Energy industry, representing the highest relative ESG performance.


Standard Chartered Bank acted as Mandated Lead Arranger, Bookrunner (MLAB), Documentation Bank and E&S Co-Ordinator bank. MUFG Bank, Ltd., and Sumitomo Mitsui Banking Corporation acted as MLABs, jointly acted as Co-Technical Advisors and Co-Green Loan Advisors. Further, BNP Paribas, Coöperatieve Rabobank U.A., Intesa Sanpaolo S.p.A. and Societe Generale each acted as MLABs for the Facility.


Among other partners, Latham & Watkins LLP and Saraf & Partners were the borrower’s counsel. The lenders’ counsel were Linklaters and Cyril Amarchand Mangaldas.

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