Adani group’s renewable energy arm Adani Green Energy Ltd is in advanced talks with a State Bank of India-led consortium to raise Rs 8,000 crore to Rs 10,000 crore to repay foreign currency loans worth $1.1 billion which are due in March, sources told Moneycontrol .
The $1.1 billion is a construction finance facility which was raised by Adani Green from a group of foreign banks for 1,390 megawatts (MW) hybrid solar and wind projects in Rajasthan.
“Talks with the PSU bank consortium are in the final stages. The existing foreign currency construction finance loans will be replaced with 18–20-year long project debt from the domestic lender consortium,” one of the sources said.
The domestic refinancing comes after Adani Green had to scrap a $600-million dollar bond offering in November following a US Department of Justice (DoJ) indictment over alleged bribes paid to Indian state officials to get power supply contracts.
In an exchange filing in November, Adani Green told shareholders that considering the DoJ criminal indictment against Gautam Adani, Sagar Adani and Vineet Adani, the company’s subsidiaries decided not to proceed with the US dollar-denominated bond offerings.
In an analyst call on January 24, Adani Green said the company is seeing interest from all the domestic lenders even for new projects.
“On the refinancing of the project, which is due in the end of this quarter, we are in a very advanced stage of discussion with one of the domestic lenders, and we should be able to announce its completion in the next few weeks,” Adani Green Energy CEO Amit Singh told analysts.
“I think the domestic lenders are more excited to work with us. They will have more opportunity. They're looking to work with us.”
Emails sent to Adani Group and SBI did not elicit a response till the time of publication.
Rajasthan renewable assets
The assets whose foreign currency loans are to be refinanced are housed under three entities titled — Adani Hybrid Energy Jaisalmer One Ltd, Adani Hybrid Energy Jaisalmer Two Ltd and Adani Hybrid Energy Jaisalmer Four Ltd.
These hybrid solar and wind energy assets were commissioned between 2022 and 2023. They have a solar and wind mix of 65 percent and 35 percent.
The entities have 25-year power purchase agreements with Solar Energy Corporation of India Ltd (SECI) and Adani Electricity Mumbai Ltd.
Around 690 MW of the energy generation capacity is contracted with SECI and the remaining 700 MW will be be supplied to Adani Electricity.
Adani Green Energy has an operating capacity of around 10 gigawatts (GW) with another five gigawatts expected to get operational by October. The renewable energy company is aiming to build a capacity of 45-50 GW by financial year FY28.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
