Green Energy Firm Achieves $750 Million Debt Redemption, Targets Massive Growth by 2030
Adani Green Energy Ltd (NSE: ADANIGREEN): Adani Green Energy Ltd has redeemed 100% of its 750 million dollars or 4.375 % Holdco Notes due on September 8, 2024. The company used its cash reserves and fully funded Redemption Reserve Account for this redemption to avoid refinancing.
Adani Green Energy Ltd said in a stock exchange filing that the amount was set aside for this purpose in January 2024 to cover the redemption of the Holdco Notes on maturity.
Holdco Notes were released in September 2021, to help support Adani Green Energy Ltd’s rapid growth plan for the next 3 years.
In the course of this time, Adani Green Energy Ltd increased its capacity by 3 times from 3.5 gigawatts and 11.2 GW and recorded an annual compound rate of growth (CAGR) that was 48 percent.
The Goal Is To Build 50 GW Of Renewable Energy Capacity Before FY30
On September 9, Adani Green Energy Ltd share was down marginally and is trading around Rs 1855 on the BSE.
The market cap of the company is in the vicinity of ₹2,95,913 crore. Promoters held 57.51 percent stake as of the end of June 2024.
Adani Green Energy Ltd said its capital strategy is based on the cash flow that it receives from its operating assets as well as the framework agreement for its construction facility. The company is planning to build 50 gigawatts in renewable power capacity in the year 2030.
The promoters of Adani Green Energy Ltd have also opted for preferential warrants totaling the sum of 9,350 crore rupees. Of this, 7,013 crore rupees is available to meet any further capital expenditure needs.
The company also announced it will be able to meet the standards of investment-grade credit for its loans. The company is focusing on capital issuance, particularly for long-term infrastructure projects.
Quick Fact
| Company name | Adani Green Energy |
|---|---|
| Redeemed Holdco Notes | 100% |
| Holdco Notes Amount | $750 million |
| Holdco Notes Rate | 4.375% |
| Holdco Notes Maturity | September 8, 2024 |
| Redemption Funding | Cash reserves, Redemption Reserve Account |
| Note Issuance Year | September 2021 |
| Note Purpose | Rapid growth plan |
| Capacity Growth | 3 times |
| Initial Capacity | 3.5 GW |
| Current Capacity | 11.2 GW |
| Annual Growth Rate | 48% |
| Future Capacity Goal | 50 GW before FY30 |
| Market Cap | ₹2,95,913 crore |
| Promoter Stake | 57.51% (June 2024) |
| Capital Strategy | Cash flow from operating assets, framework agreement for construction facility |
| Future Capacity Plan | 50 GW by 2030 |
| Preferential Warrants | ₹9,350 crore |
| Available Capital for Expansion | ₹7,013 crore |
| Investment-Grade Standard | Target for loans |
| Focus | Capital issuance for long-term infrastructure |
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