Adani Green Energy will raise approximately $4 billion to $4.5 billion through foreign dollar bonds over the next three to four years to fund its expansion and reach its stated goal of 45 GW of renewable energy capacity by 2030. Officials said the company plans to procure it.
The company is essentially aiming to raise about $1 billion a year, according to people familiar with the matter.
The company, run by Gautam Adani, operates a renewable energy portfolio of nearly 10GW, has already spent more than $2.5 billion, and plans to spend another $8 billion on installing power generation capacity. There is.
Approximately 20% of this will be raised through equity, and the rest will be financed by debt, including some domestic debt, primarily in the form of dollar borrowings. Domestic debt mainly consists of vanilla loans and bond issuance from banks.
As for the equity component, it will be provided to strategic investors by promoters, flagship Adani Enterprises and private equity placements, the people said.
Last year, the company raised more than $1.1 billion through a preferential issue of stock acquisition rights to promoter groups. Just last month, the company successfully raised $409 million through a USD-denominated bond sale. This was the group's first offering since the Hindenburg report and was met with an enthusiastic response from investors, with applications worth $3 billion.
The issue price of the 18-year bond was 6.7%, which was competitively lower than the reference price due to strong demand. According to people familiar with the matter, after accepting the latest bond issue, the group is now sticking to its preferred method of raising funds from overseas markets.
According to reports, another $1 billion worth of bonds are expected to be issued later this year.
If the U.S. Federal Reserve lowers interest rates later this year, as most expect, the company could expect to find it cheaper to borrow.
energy portfolio
Adani Green's operational portfolio includes over 6 GW of solar assets, over 1.4 GW of wind assets, and over 2 GW of hybrid assets. A further 12 GW of assets are under construction, of which 10.5 GW is solar. This is part of a 21.8GW fixed asset portfolio, with land secured and power purchase agreements in place.The company has secured his 200,000 acres of land for wind and solar power projects
The company is operating 1GW of solar power at its large renewable energy park in Kavda, Gujarat, which is touted to become the world's largest renewable energy park with a total capacity of 30GW in the next five years. In Rajasthan, he is setting up his 2.1 GW hybrid power cluster in Jaisalmer.