Adani Green Energy Raises Japanese Yen Denominated Refinancing Facility Of $200 Million

Adani Green Energy Ltd (AGEL), through its subsidiary Adani Solar Energy, has raised Japanese yen denominated facility to refinance its existing indebtedness.

The facility comprises 27,954 million Japanese yen (around $200 million) amortising project loan facility, assessing the 16 years debt structure with door-to-door tenor of 10 years and average tenor of more than 8 years, the company said in statement on Thursday (1 December).

The project loan facility is supported by AGEL’s strong relationship with its two core relationship banks - MUFG Bank, Ltd and Sumitomo Mitsui Banking Corporation with equal participation, it added.

The facility is linked to Tokyo Overnight Average Rate (TONA), a Japanese benchmark rate gauge, which yields close to zero highlighting the appeal to broaden the alternative pools of capital providing relatively competitive interest rates, the company said.

"The company is committed to have access to long-term capital without depleting its growth capital and will continue to look at multiple alternative pools of capital to have the sustainable funding solution to spearhead India’s energy transition," it added.

The refinancing facility is consistent with AGEL’s strategy of securing long term financing establishing the debt structure in conformity to underlying asset life for its operational assets, it said.

The facility follows the principles of investment grade credit metrices which have the life-cycle leverage profile (measured through Debt to EBITDA) of 3x covering the underlying PPA tenor.

“This is an excellent result for AGEL, showing strong support from our lenders and demonstrates our ability to access bank debt at competitive terms in sync with the underlying asset development model to a provide long-term solution,” said Phuntsok Wangyal, CFO, Adani Green Energy Ltd.

“The facility demonstrates AGEL’s pro-active and continued approach to access liquidity against the backdrop of a challenging interest rate environment in the broader markets, providing the long-term solution. With lower benchmark rate, lesser margin and historical low swap rates, this provides significant flexibility and a competitively priced funding solution for AGEL’s high grade renewable asset portfolio," Wangyal added.