- AGEL has signed definitive agreements with the Toronto-headquartered SkyPower Global for acquisition of 100% stake in a special purpose vehicle (SPV) that owns 50 MW operating solar asset at Telangana
- Last week, AGEL sealed a USD 1.35 billion debt facility with participation from 12 international banks to finance its under-construction renewable portfolio
- The facility would initially finance the 1.69 GW hybrid portfolio of solar and wind renewable projects to be setup in four SPVs in the state of Rajasthan, India
- It is one of the largest revolving project financing deals to date in the renewable sector in Asia and the first certified green hybrid project loan in India
- Adani Green Energy Limited aims at a capacity of 25 GW by 2025, with a vision to become the largest renewables company in the world
Ahmedabad, India, 21 March 2021 – Adani Green Energy Limited (AGEL), one of the largest renewables companies in India, announced yesterday that it has signed a share purchase agreement for acquisition of 100% stake in an SPV holding 50 MW operating solar project of the Toronto-headquartered SkyPower Global.
The project, located in Telangana, was commissioned in Oct 2017 and has a long-term Power Purchase Agreement (PPA) with the Southern Power Distribution Company of Telangana.
With this acquisition, AGEL shall increase its operating renewable capacity of 3,395 MW with a total renewable portfolio of 14,865 MW. The closing of the transaction is subject to customary approvals and conditions.
Last week, ADEL raised USD 1.35 billion debt package in one of Asia’s largest project financing deals
The revolving project finance facility would initially finance the 1.69 GW hybrid portfolio of solar and wind renewable projects to be setup in four SPVs in the state of Rajasthan, India.
According to the agreement, 12 international banks – Standard Chartered Bank, Intesa Sanpaolo S.p.A, MUFG Bank, Sumitomo Mitsui Banking Corporation, Coöperatieve Rabobank U.A., DBS Bank Ltd., Mizuho Bank, Ltd., BNP Paribas, Barclays Bank PLC, Deutsche Bank AG, Siemens Bank GmbH and ING Bank N.V committed for the facility which will be the first certified green hybrid project loan in India. The new pool of liquidity strengthens AGEL’s strategy to fully fund its under-construction asset and augurs well for its vision of scaling capacity to 25 GW by 2025.
The facility underlines the overall development philosophy of Adani portfolio companies implemented through in-house developed project excellence framework committed to follow equator principles and the highest standard of due diligence covering all international standard Environment, Social and Governance (ESG) aspects.
“We believe that establishing depth and diversity in our funding resources is critical for AGEL’s vision to become the largest renewable player in the world. The banks that have committed to this strategic transaction are our key partners in ensuring seamless access to global capital for our underlying renewable asset portfolio,” said Vneet Jaain, MD & CEO, AGEL.
The facility will also ensure capital recycling needs of the banks and make the same capital available for future projects of AGEL and position the company well to capture growth in the attractive Indian renewables sector, he added.
Each of the lending partners signing up for this facility played a distinguished role. Standard Chartered Bank, acted as lead underwriter, Mandated Lead Arranger, Bookrunner (MLAB), environmental due diligence adviser, co-documentation bank and co-green loan coordinator for the facility. Likewise, MUFG Bank played the role of MLAB, technical bank, and co-green loan coordinator. Further, BNP Paribas acted as MLAB, co-documentation DBS Bank Ltd acted as MLAB, accounts bank and Mizuho was the MLAB, financial modelling bank. Intesa Sanpaolo S.p.A, Sumitomo Mitsui Banking Corporation, Coöperatieve Rabobank U.A, Barclays Bank PLC, Deutsche Bank AG, Siemens Bank GmbH and ING Bank N.V. acted as MLABs for the Facility.
Among other partners, while Latham & Watkins LLP and Luthra & Luthra were the borrower’s counsel, the lenders’ counsel were Linklaters and Cyril Amarchand Mangaldas. Tractebel Engineering Private Limited acted as the lender’s technical advisor, UL acted as the lenders energy yield assessment consultant, ERM acted as the lenders environmental & social consultant, Arcadis acted as the lenders environmental and social due diligence consultant, Deloitte acted as the financial model audit consultant, Marsh acted as the lenders’ insurance agent and KPMG acted as independent assurance provider for the Green Loan.
Adani Green Energy Limited Profile
AGEL, a part of India-based Adani Group, has one of the largest global renewable portfolios with over 14,815 MW of operating, under-construction and awarded projects catering to investment-grade counterparties. The company develops, builds, owns, operates and maintains utility-scale grid-connected solar and wind farm projects. Key customers of AGEL include NTPC and Solar Energy Corporation of India (SECI) and various state discoms. Listed in 2018, AGEL is a USD 25.03 billion market cap company helping India meet its COP21 (Paris agreement) goals.
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