Green Energy Ltd (AGEL) is trying to join hands with almost a dozen foreign banks to raise greenfield funding for its under-construction projects. AGEL is planning to raise $1.8 billion for the under-construction and contracted portfolio of 12 Gw, which incorporates the country’s first manufacturing-linked solar power plant of 8 Gw.
Vineet S Jain, MD & CEO, AGEL said In a post-results call, the company’s total renewable portfolio stands at 14.6 Gw of which 2.6 Gw has been commissioned. “The firm currently is in the process of connecting with the banks to raise $1.8 billion facilities to fund the under-construction pipeline.”
During the first quarter of FY21 ended June, AGEL reported a PBT of Rs 51.27 crore as against a loss of Rs 131.24 crore during the same period last year. In the first quarter of the financial year 2021, the total income of the firm increased to Rs 878.14 crore from Rs 675.23 in the same quarter last year.
Sagar Adani, Executive Director, AGEL while explaining the funding plans of the company said, for our construction plans we will raise funds from the Indian banks and once they are operational, we will refinance the portfolio with the International bond-funding. Moving forward, considering the size and scale of our project, along with the Indian banks, we would have 10 international banks on-board which are going to work with us for construction greenfield funding.
He said the financial assistance would back the company in diversifying its construction financial portfolio and all projects would be fully funded at the time of construction.
Adani said the financial assistance provided by the International banks would be a revolving construction facility. “the moment, projects project gets approved and operations starts, they would be shifted from the international bond market and made available for the next tranche of assets,” he promised to reduce the firm’s debt-to-EBITDA ratio from 6 currently to 5.5.
In its statement on the Bombay Stock Exchange, AGEL said Adani Green Energy has advanced to become the largest solar power producer in the world, having won the world’s largest solar bid of 8 Gw. “With this, we have come to a step closer to our goal of commissioning renewable capacity of 25 Gw by 2025.”
Recently Adani won the largest solar development bid
Green Energy has won the first of its kind manufacturing linked solar agreement from the Solar Energy Corporation of India (SECI). As a part of the award, AGEL will develop 8 GW of solar projects along with a commitment that will see Adani Solar establish 2 GW of additional solar cell and module manufacturing capacity. This award, the largest of its type, ever, in the world, will entail a single investment of Rs. 45,000 crore (US $6 billion) and will create 400,000 direct and indirect jobs. It will also displace 900 million tonnes of carbon dioxide over its lifetime.
With this win, AGEL will now have 15 GW capacity under operation, construction or under contract thereby accelerating its journey towards becoming the world’s largest renewables company by 2025. This award will take the Company closer to its target of achieving an installed generation capacity of 25 GW of renewable power by 2025 which in turn will see it committing an investment of Rs. 112,000 crores ($15 billion) in the renewable energy space over the next 5 years.