Adani Green Energy Limited (AGEL) has announced a plan to fully redeem its $750 million bond due in September to help bolster investor confidence following recent market challenges through a filing on the exchanges on Friday. The outstanding amounts of these notes will be entirely secured through cash balances set aside in various reserve accounts, providing full security eight months ahead of the maturity date.
The company had initially begun planning to repay $750 million 4.375 notes, due on September 9, 2024 (Holdco Notes), in September 2023, as earlier reported by Business Standard. At the time, it said that the bond's underwriters would provide a funding letter for $675 million and listed $75.47 million in restricted reserves.
The redemption planned for the Holdco Notes unveiled in today's filing include:
Amounts in the reserve accounts and internal accruals: $169 million, encompassing the debt service reserve account, hedge reserves, and interest on reserve account.
TotalEnergies 1,050 MW JV Consideration: $300 million, with the transaction, already closed on December 26 2023, and funds lying in the senior debt redemption account (SDRA) of the Holdco notes.
Proceeds from initial tranche of the promoter preferential allotment: Approximately $281 million (equivalent to Rs 2,338 crores), expected by the end of January 2024, with the funds set to be deposited into the SDRA of the Holdco notes.
With this move, AGEL aims to ensure full security of the entire $750 million Holdco Notes eight months before the maturity date.
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The company achieved this by raising $1.425 billion, comprising $1.125 billion from preferential issuance by promoters and $300 million from the TotalEnergies JV through an equity capital raise programme.
AGEL stated that through this, the company aims to reflect "the deep interest of long-term investors and strategic partners, coupled with unwavering promoter commitment to meet AGEL's strategic priorities of achieving its target of 45 GW by 2030."
Shares of AGEL were trading at Rs 1,699 at 1:20 pm on the BSE.
