Adani Green Energy Ltd (AGEL), India’s largest and one of the world’s leading renewable energy (RE) companies, announced this week that it has secured $400 million financing for its under-construction 750 MW solar projects in Rajasthan and Gujarat. It secured the lending from a consortium of five leading international banks, including Cooperative Rabobank, DBS Bank, Intesa Sanpaolo, MUFG Bank, and Sumitomo Mitsui Banking.
One of the projects, with a 500 MW capacity, is being developed in Rajasthan and will benefit from a long-term power purchase agreement (PPA) with the Solar Energy Corp. of India (SECI). The second one, with 250 MW capacity, is a standalone merchant power project being implemented at the world’s largest RE cluster in Khavda region of Gujarat.
These projects are expected to come online from November 2024 onwards.
“With confidence in the evolving merchant energy market, AGEL is diversifying revenue streams, along with traditional PPAs, to enhance project revenue and position itself favorable for sustained value creation. Following AGEL’s lead, banks are becoming more comfortable with financing merchant projects with the transaction marking a sentiment shift in the international banking market,” stated AGEL.
The $400 million construction facility along with the funding solutions also provides the syndicated guarantee-backed assurance program in sync with AGEL’s procurement strategy. The transaction paves the way for a sustainable debt structure, developed as part of AGEL’s capital management plan, for financing merchant exposure.
AGEL has 10,934 MW operational portfolio, largest in India, delivering clean power to the national grid. This consists of 7,393 MW solar, 1,401 MW wind and 2,140 MW wind-solar hybrid capacity.
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