Adani Green completes funding of reserves for $750-million Holdco Bond

Adani Green

Adani Group green venture Adani Green Energy Limited (AGEL) on January 29 said it has completed the funding of the reserves for a $750-million Holdco Bond.

The company completed the funding with the receipt of the funds under the preferential allotment of Rs 9,350 crore ($1,125 million) to the promoters of Adani Green.

The sources of funds are Total Energies JV proceeds ($300 million), promoters preferential allotment ($281 million) and debt service reserve account, hedge reserves and interest on reserve account ($169 million), respectively, Adani Green said in a statement.

"Shareholders of AGEL approved the preferential allotment with overwhelming 99.9 percent majority on January 18, 2024 and thereafter the promoters funded Rs 2,338-crore ($281 million) primary infusion into AGEL last week. AGEL has set aside the funds in the Senior Debt Redemption Account (SDRA) and other reserve accounts of the Holdco Notes, after which the funding of the reserves has been completed," the company said.

On January 8, the company announced a redemption plan for the $750 million Holdco notes to boost investor confidence. The company had then said the outstanding amounts of the Holdco Notes shall be fully secured through cash balances set aside as part of various reserve accounts, eight months before the maturity.