Ahead of Schedule: Adani Green Energy Limited (AGEL) Wipes Out $750M Debt Well Before Deadline!
8 months before the Holdco Notes of Adani Green Energy Limited (AGEL) were set to mature, AGEL revealed a plan to pay back the $750 million owed on September 9, 2024.
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The outstanding amount would be completely covered by cash in different reserve accounts securing the Holdco Notes.
Here’s the breakdown of the plan:
- Reserve Accounts and Internal Accruals: $169 million, covering Debt Service Reserve Account, Hedge Reserves & Interest on Reserve Account.
- Total Energies 1,050 MW JV Consideration: $300 million. This transaction closed on December 26, 2023, and the funds are already in the Senior Debt Redemption Account (SDRA) for the Holdco notes.
- Proceeds from the Initial Tranche of the Promoter Preferential Allotment: Approximately $281 million (equal to Rs 2,338 crore). Expected at the end of January 2024, these funds will be deposited into the SDRA of the Holdco notes.
This plan fully secures the entire $750 million for the Holdco Notes eight months before the maturity date.
AGEL effectively paid off the Holdco Notes ahead of time, reducing its debt significantly while still pursuing its growth plans.
AGEL achieved this through a successful equity capital raise program of $1.425 billion, which included $1.125 billion from preferential issuance by promoters and $300 million from the Total Energies Joint Ventures.
This reflects the strong interest of long-term investors and strategic partners, along with the commitment of AGEL’s promoters to achieve their goal of 45 GW by 2030.
