By: ICN Bureau
Last updated : January 09, 2024 10:00 am
The outstanding amounts of the Holdco Notes shall be fully secured through cash balances set aside as part of various reserve accounts securing the Holdco Notes, eight months prior to the maturity
Adani Green Energy Limited (AGEL) has announced the redemption plan for the US $750 million 4.375 notes due 9th September 2024 (Holdco Notes).
The outstanding amounts of the Holdco Notes shall be fully secured through cash balances set aside as part of various reserve accounts securing the Holdco Notes, eight months prior to the maturity.
The redemption plan for US $750 million Holdco Notes: Amounts in the Reserve Accounts and Internal Accruals - US $169 million (including Debt Service Reserve Account, Hedge Reserves & Interest on Reserve Account); TotalEnergies 1,050 MW JV Consideration – US $300 million, transaction closed on 26th December 2023, and the funds are already lying in the Senior Debt Redemption Account (SDRA) of the Holdco notes; and Proceeds from Initial tranche of the Promoter Preferential Allotment – ~US $281 million, (US$ equivalent of Rs. 2,338 crores), expected in the end of January 2024, and the funds shall be deposited into the Senior Debt Redemption Account (SDRA) of the Holdco notes.
As a result, the entire amount of the US $750 million Holdco Notes is fully secured eight months prior to its maturity date. With this outcome, AGEL has fully defeased the Holdco Notes, eight months prior to the maturity date and has further resulted in significant deleveraging in AGEL by way of equity proceeds while continuing to deliver on the growth plans.
Underpinning the repayment is the successful equity capital raise program of US $1.425 billion (includes US $1.125 billion of preferential issuance by promoters and US $300 million from TotalEnergies JV), reflecting the deep interest of long-term investors, strategic partners, coupled with unwavering promoter commitment to meet AGEL’s strategic priorities of achieving of 45 GW by 2030.