Moody's assigns Baa3 rating to Adani Green Energy's senior secured notes

Moody's Ratings on Friday assigned Baa3 rating to Adani Green Energy Hybrid Restricted Group's USD 1.2 billion senior secured notes.

Adani Green Energy Hybrid Restricted Group (RG-3) is a newly created restricted group comprising four indirect wholly-owned subsidiaries of Adani Green Energy Ltd (AGEL), Moody's said in a statement.

The four subsidiaries of AGEL are Adani Hybrid Energy Jaisalmer One Limited, Adani Hybrid Energy Jaisalmer Two Limited, Adani Hybrid Energy Jaisalmer Four Limited and Adani Solar Energy Jaisalmer One Private Limited.

Moody's said it "has assigned a Baa3 rating to the 20-year USD1.2 billion backed senior secured notes to be issued by RG-3."

Each of the restricted subsidiaries will be an issuer for a portion of the notes, and a guarantor to the remaining notes.

Proceeds from the notes will be used to refinance part of the USD 1.3 billion outstanding senior debt of RG-3's restricted subsidiaries. RG-3 intends to repay the balance of the existing debt using available cash and reserves at the restricted subsidiaries.

"The Baa3 rating on the USD notes reflects the collective credit quality of RG-3's restricted subsidiaries, which in turn is supported by predictable revenues from a portfolio of projects operating under long-term power purchase agreements with central government-linked utilities and Adani Electricity Mumbai Limited (Baa3, stable)," Spencer Ng, Moody's Ratings Vice President and Senior Credit Officer said.