Adani Green Energy plans to raise $44.5 b via overseas bond issuances over four years

Adani Green Energy intends to raise around $44.5 billion through overseas dollar bonds over the next threefour years to fund its expansion and reach its stated target of 45GW renewable energy capacity by 2030, sources said.

The company is effectively looking to raise around $1 billion a year, sources said.

The Gautam Adanicontrolled company has already spent over $2.5 billion and it envisages spending another $8 billion on setting up power generation capacity.

Of this, around 20 per cent will be funded through equity, and the remaining through debt, mostly as dollar borrowings, and with a small component of domestic debt. The domestic debt will be mostly vanilla loans from banks and issue of debt securities.

With regard to the equity portion, sources said that it would be contributed by promoters, flagship Adani Enterprises and private equity placements to strategic investors.

BOND ROUTE TO FUNDS

Last fiscal, the company had raised over $1.1 billion through a preferential issue of share warrants to the promoter group. Last month, the company raised $409 million through a US dollar bond sale – that saw enthusiastic response from investors, with subscriptions worth $3 billion being received.

The 18year bond issuance was competitively priced at 6.7 per cent on the back of strong demand, lower than the indicative pricing. Sources said that this reception of its bond offering has prompted the group to stick to its favoured method of raising funds from the overseas markets.

Another $1 billion worth of bonds are in the offing later this year, reports have indicated.