Adani Green Energy secures $400M funding from Global Banks

Adani Green Energy Limited (AGEL) has secured USD400 million in financing for its under-construction 750 MW solar projects in Rajasthan and Gujarat through a consortium of five prominent international banks. The funding is expected to support projects slated to go online from November 2024 onwards.

AGEL’s projects include a 500 MW capacity solar venture in Rajasthan with a long-term power purchase agreement with the Solar Energy Corporation of India Limited. The second project, boasting a 250 MW capacity, is a standalone merchant power project situated in Khavda, Gujarat, within the world’s largest renewable energy cluster.

Commenting on the development, AGEL highlighted its strategic approach to diversifying revenue streams by tapping into the evolving merchant energy market, alongside traditional Power Purchase Agreements (PPAs), to bolster project revenue and enhance its competitive positioning.

The consortium of lenders comprises Cooperative Rabobank U.A., DBS Bank Limited, Intesa Sanpaolo S.p.A., MUFG Bank Limited, and Sumitomo Mitsui Banking Corporation.

AGEL emphasized its dedication to green energy solutions, underscoring its role in accelerating India’s transition towards a lower carbon future and achieving UN Sustainable Development Goals (SDGs), particularly SDG 7 (affordable and clean energy).

Additionally, Sustainable Fitch, a second-party opinion provider, certified the facility as a ‘green loan,’ highlighting the robustness and transparency of AGEL’s 750 MW Solar Projects Green Loan Framework, aligning with the Green Loan Principles, 2023.

Legal counsel for the transaction included Latham & Watkins LLP and Saraf & Partners representing the borrower, while Linklaters and Cyril Amarchand Mangaldas acted as counsel for the lenders.

The funding is poised to bolster AGEL’s financing merchant exposure, reinforcing its position as a leader in the renewable energy sector.