Adani Green Energy secures USD 1.36 billion construction financing for world’s largest renewable energy park

Ahmedabad (Gujarat) [India] : Adani Green Energy Ltd (AGEL), a trailblazer in the renewable energy sector, has achieved a milestone by securing a USD 1.36 billion construction facility.

According to a press release by Adani Renewables, this success marks a significant augmentation of AGEL’s Construction Financing Framework, now totalling USD 3 billion. The funding comes from a consortium of international banks, solidifying its position as one of the most substantial Project Finance deals in Asia.

This substantial green loan facility is poised to play a pivotal role in propelling the development of AGEL’s project – the world’s largest Renewable Energy Park situated at Khavda in Gujarat.

The funding will be instrumental in the initial stage of development, contributing 2,167 MW at Khavda, aligning with AGEL’s goal of achieving 45 GW operating renewable capacity by 2030 and supporting India’s net-zero journey.

The definitive agreements for this funding round have been successfully executed with eight leading international banks.

These banks, which have been integral in establishing AGEL’s Construction Financing Framework since March 2021, include BNP Paribas, Cooperatieve Rabobank U.A., DBS Bank Ltd, Intesa Sanpaolo S.p.A., MUFG Bank, Ltd., Societe Generale, Standard Chartered Bank, and Sumitomo Mitsui Banking Corporation.

This financing is not just a crucial component of AGEL’s capital management plan but also stands as a testament to its successful track record and unwavering commitment to sustainable practices.

The green loan facility has received certification from Second Party Opinion provider Sustainalytics, ensuring alignment with core components of Green Loan principles and contributing significantly to Sustainable Development Goal 7 (affordable and clean energy).

Vneet S Jaain, MD of Adani Green Energy Ltd, expressed gratitude to the consortium, emphasizing the historic nature of the extension of the Construction Financing Framework to USD 3 billion.

Jaain said, “The extension of the Construction Financing Framework to USD 3 bn is a historic landmark and will boost the development of the Khavda site which is poised to become the world’s largest Renewable Energy Park with a generation capacity of 17 GW. It will be a catalyst in the accelerated completion of the development activities at the project site. We thank the consortium for reposing faith in our project execution capabilities and strategic growth vision aligned with India’s decarbonization goals. We will continue the growth momentum to deliver the projects and support India’s clean energy transition”.

He underscored the role of this funding as a catalyst in accelerating the completion of development activities at the Khavda project site.

Amit Singh, CEO of Adani Green Energy Ltd, highlighted the pivotal role of the Construction Financing Framework in supporting the company’s commitment to building a sustainable future.

Singh said, “We believe, the Construction Financing Framework is an essential element of our development agenda and supports our unwavering commitment to build a sustainable future. The funding not only validates our expertise as a developer and operator of strategically vital renewable energy projects but also demonstrates the trust of our financiers in our strategic vision.

Singh added, “We are committed to delivering low-cost green electrons by leveraging technology, accelerating digital transformation, and continued focus on development and operational excellence. We are committed to expanding our renewable power capacity to 45 GW by 2030 underscoring our dedication to mitigate climate change risks.”

He emphasized AGEL’s dedication to delivering low-cost green electrons and expanding renewable power capacity to 45 GW by 2030.

Anupam Misra, Head of Group Corporate Finance (Adani Portfolio), termed this moment as historical, emphasizing the intrinsic link between sustainability and innovative financing solutions.

Misra said, “Sustainability and innovative and scalable financing solutions are intrinsically linked, forming twin engines driving progress to transition into a low-carbon future. This is a historical moment for us alongside the 28th United Nations Climate Change Conference (COP28), as we stride in, accelerating development of sustainable infrastructure”.

Misra further added, “We are incredibly proud to put forward the framework for our portfolio companies where we have raised sustainable financing solutions for Adani Green, Adani Energy Solution to support the delivery of critical infrastructure projects. The latest funding marks the third round of participation from lenders for Adani Green Energy Ltd and provides the successful template for the fundraise in sync with our capital management plan.”

This funding round marks the third participation from lenders for Adani Green Energy Ltd, setting a successful template in line with the company’s capital management plan. The consortium’s Co-Green structuring banks include DBS Bank Ltd, MUFG Bank, Ltd, Standard Chartered Bank, and Sumitomo Mitsui Banking Corporation.

Cooperatieve Rabobank U.A. acted as the Documentation and Structuring Bank, and MUFG Bank, Ltd. served as the Guarantee structuring bank. Legal counsel for the borrower was provided by Latham & Watkins LLP and Saraf & Partners, while the lenders were represented by Linklaters and Cyril Amarchand Mangaldas.