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Adani Green Energy Secures $400 Million Financing for 750 MW Solar Projects

Adani Green Energy Ltd (AGEL) has successfully secured USD 400 million financing from a consortium of five leading international banks for its 750 MW solar projects in Rajasthan and Gujarat. The financing will support the construction of these projects, expected to come online from November 2024 onwards.

Project Details

  • Rajasthan Project: A 500 MW capacity project with a long-term power purchase agreement (PPA) with the Solar Energy Corporation of India (SECI).
  • Gujarat Project: A standalone merchant power project with 250 MW capacity, located at the world’s largest renewable energy cluster in Khavda, Gujarat. AGEL aims to diversify revenue streams by tapping into the evolving merchant energy market.

Banks’ Confidence and Financing Structure

  • The consortium of lenders includes Cooperative Rabobank U.A., DBS Bank Ltd., Intesa Sanpaolo S.p.A., MUFG Bank, Ltd., and Sumitomo Mitsui Banking Corporation, reflecting growing confidence in financing merchant projects.
  • The financing package includes a USD 400 million construction facility and a syndicated guarantee-backed assurance program, aligning with AGEL’s procurement strategy and capital management plan.

Sustainable Financing and Green Loan Framework

  • The financing, housed under AGEL subsidiaries, underscores the company’s commitment to sustainability and aligns with the Green Loan Principles, 2023.
  • Sustainable Fitch provided a favorable second-party opinion on the robustness and transparency of AGEL’s 750 MW Solar Projects Green Loan Framework, emphasizing its contribution to India’s transition towards a lower carbon future.

Legal Counsel

  • Borrower’s counsel: Latham & Watkins LLP and Saraf & Partners.
  • Lenders’ counsel: Linklaters and Cyril Amarchand Mangaldas.

Impact and Future Plans

  • AGEL’s operational portfolio of 10,934 MW, the largest in India, reinforces its commitment to delivering reliable, affordable, and clean power to the national grid.
  • This financing marks a milestone for the Indian renewable energy sector, driving clean energy transition and decarbonization while advancing UN Sustainable Development Goal 7 (affordable and clean energy).

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