Adani Green to Raise $1.35B Loan to Fund Solar Projects; Cash Collateral for $750M Holdco Bond Likely by January 2024

Adani Green Energy Ltd. is in the process of raising an around $1.35 billion construction loan to fund the completion of some of its solar projects with an aggregate capacity of around 2.2 gigawatt or GW, one source close to and another source familiar with the development said. Banks involved in the transaction include BNP Paribas, Intesa Sanpaolo, MUFG Bank, Rabobank, Societe Generale, Sumitomo Mitsui Banking Corporation and Standard Chartered Bank among others, and the company is keen to close the loan in a month’s time, the sources said, while also adding that the loan closure may take more time.

The five-year loan is being arranged to complete around five under construction solar projects, the sources said.

Separately, Adani Green had previously told investors that it would be refinancing its $500 million 6.25% senior secured bonds due December 2024 through private placement of long-term USD-denominated notes, as reported. However, the private placement is likely to take some time to close due to prevailing high interest rates, the sources said.

Meanwhile, the promoter intends to inject cash into an escrow account which will serve as cash collateral for its $750 million 4.375% September 2024 holdco bond, the sources said, adding that the escrow is likely to be set up by January.

The company had told investors that it will come up with a firm plan for taking out the holdco bond by June, as reported.

As reported, Adani Green announced in September that it is setting up a 50:50 joint venture with TotalEnergies SE with Total investing $300 million in the venture. Part of the $300 million will also be deposited into the escrow account, the sources said.

The joint venture announced on Sep. 20 will comprise a 1,050 megawatt of alternating current (MWac) portfolio consisting of operational (300 MWac), under construction (500 MWac) and under development assets (250 MWac), incorporating both solar and wind power sources.

An Adani spokesperson did not respond to email and a call requesting for comment.

–Malvika Joshi