Three arms of Adani Green Energy Ltd (AGEL) have collectively raised Rs 612.30 crore through their maiden domestic bond issue on a private placement basis for debt refinancing.
According to a company statement, rated, listed, secured, redeemable, non-convertible debentures (NCDs) of the face value of Rs 10 lakh each, in multiple series, have an average annualized coupon rate of 7.83 per cent per annum (fixed) and a tenure up to 12 years.
It said the proceeds from the NCDs (bonds) will be utilised to part-refinance existing rupee term loans bearing higher interest costs.
"Three subsidiaries of AGEL – Adani Green Energy (UP) Ltd, Prayatna Developers Pvt Ltd and Parampujya Solar Energy Pvt Ltd, collectively housing 930 MW of operational solar power projects – have raised Rs 612.30 crore by their maiden domestic bond issuance, on private placement basis," the statement said.
The NCDs are rated AA/Stable by CRISIL and AA(CE)/Stable by India Ratings. The NCDs will be listed on the Wholesale Debt Market segment of BSE.
"Optimization of the cost of borrowing is key to our capital management program and this transaction reinforces the company’s strategy," said Vineet S Jain, MD & CEO of AGEL.
"We are encouraged by the robust support from the finance community, which recognises the strength of the company’s business model and our capital management approach. We could manage this fundraising at favourable terms. This puts the company on a more solid platform for long-term growth."
The success of the domestic debt market issue will open up a new source of funding, allowing for more flexibility in capital structure while also lowering interest costs.