Adani Green to invest $1.12 billion to bolster capital spending and reduce debt

Adani Green Energy Ltd (AGEL) will invest $1.12 billion in the green energy sector to boost capital spending and reduce debt, the company announced in a corporate filing.

The company’s board of directors gave a nod to invest ₹9,350 crore in the green energy sector, the filing said, adding that these funds will push Adani Green’s ambitious plans to generate 45 GW of renewable energy by 2030.

Earlier on Monday, AGEL signed a pact with Solar Energy Corp. of India (SECI) to supply the remaining 1,799 megawatts of the total 8 gigawatts of clean energy project that it had secured in a tender in June 2020.

The renewable energy developer has secured power purchase agreements (PPA) for 19.8 gigawatts of its total 20.6 gigawatts capacity. The remaining 800 megawatts are being operated on a merchant basis. Moreover, the company holds vast land holdings exceeding 20,000 acres, equivalent to a potential additional capacity of over 40 gigawatts in areas abundant with resources.

According to the latest development, Adani Green’s board has approved a preferential issuance of warrants to the promoters for ₹9,350 crore. The distribution will be subjected to approvals from regulatory bodies, statutory authorities, and company shareholders. Adani Green has called for an extraordinary general meeting (EGM) on 18 January 2024 to seek approvals.

The company secured $1.36 billion from a consortium of eight leading international banks for India’s largest 2,167 megawatts solar power projects in Gujarat’s Khavda. The project will include solar panels and wind turbines spread over 726 square kilometers. The project is estimated to cost $2.26 billion and is expected to be completed in three years.

In addition, AEGL has announced $1.42 billion equity capital, including $1.12 billion from equity shares and $300 million from French Oil Company Total Energies JV, making it a $3 billion capital raise.

The company mentioned that with the deep interest shown by long-term investors, strategic partners, financial institutions, and banks, it will be able to achieve its target of adding 45 gigawatts of renewable capacity by 2030.

($1= Rs83.17)