Financing for its under-construction 750 MW Solar Projects in Rajasthan and Gujarat.
Adani Green Energy Ltd (AGEL), India’s premier renewable energy company, has achieved a significant milestone in its expansion efforts. It has secured USD 400 million in financing for its under-construction 750 MW Solar Projects in Rajasthan and Gujarat. This financing, facilitated by a consortium of five leading international banks, is a testament to AGEL’s prowess and will enhance its capacity to deliver clean and sustainable power to the national grid.
Confidence in the Merchant Energy Market Spurs International Financing
The financing package reflects AGEL’s commitment to diversifying revenue streams and innovative approaches. It includes standalone merchant power projects alongside traditional power purchase agreements (PPAs). With one of the projects in Rajasthan backed by a long-term PPA with the Solar Energy Corporation of India (SECI) and the other in Gujarat operating as a standalone merchant power project, AGEL is not just generating revenue but also pioneering new avenues for growth of India’s renewable energy sector.
Milestone Achievement in Sustainable Debt Structure
The consortium of lenders, including Cooperative Rabobank U.A., DBS Bank Ltd., Intesa Sanpaolo S.p.A., MUFG Bank, Ltd., and Sumitomo Mitsui Banking Corporation, not only provides the financing but also underscores the international banking community’s recognition of AGEL’s growth trajectory and commitment to sustainability. The financing facility, certified as a ‘Green Loan’ by second-party opinion provider Sustainable Fitch, is designed to fund environmentally friendly projects. This certification aligns perfectly with AGEL’s green energy objectives and promotes India’s transition towards a lower carbon future.
This financing marks a milestone for AGEL’s capital management plan. It enables the company to manage its merchant exposure, which refers to the risk of fluctuating electricity prices in the wholesale market, effectively while driving the integration of renewable energy into India’s energy landscape. With a robust operational portfolio of 10,934 MW, including solar, wind, and wind-solar hybrid capacity, AGEL continues to lead the charge towards a cleaner and more sustainable energy future.
Adani Green’s successful financing initiative advances its renewable energy projects and sets a precedent for international financing of merchant energy projects in India. This achievement underscores the growing confidence in India’s renewable energy sector and its pivotal role in driving clean energy transition and decarbonization efforts on a global scale. The specific amount of financing secured by AGEL is USD 400 million.
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