Adani Green Energy plans $1.35 billion fundraising: Report
Adani Green Energy is raising capital for the construction of four solar and wind energy projects.
August 20, 2020 / 12:34 PM IST
Adani Green Energy is in talks to raise $1.35 billion through an offshore loan to fund construction of four projects over the next couple of years.
Adani Green will use a 'go-to-market' financing plan which will involve an initial loan from a group of foreign banks, according to a report by The Economic Times.
The company has begun discussions with lenders such as Standard Chartered Bank, JPMorgan, MUFG, Barclays, DBS Bank and Qatar National Bank, among others, sources told the publication.
Moneycontrol could not independently verify the story.
Adani Group had not yet responded to queries sent by The Economic Times, while the banks could not be contacted immediately.
"The loan is primarily for the construction of four solar and wind energy projects, which would start generating revenues in the next one and a half years," a source told the publication.
Adani Green intends to repay the proposed loan from foreign lenders before maturity, using the proceeds of a future bond sale, backed by upcoming project revenues, the report said.
Adani Green might take the loan through a subsidiary, and the details might be finalised in the next three to four weeks, the report added.
The loan will be priced in proportion to the six-month, dollar-based London Interbank Offered Rate (Libor), and have a tenor of five to eight years.