- The facility will finance the 450 MW hybrid portfolio of solar and wind renewable projects in the state of Rajasthan, India
- The facility is Green Loan certified by the Second Party Opinion Provider ISS ESG, with a significant contribution to SDG 7 (affordable and clean energy), and SDG 13 (climate action)
- The facility puts AGEL at the forefront to achieve the target of 45 GW renewable energy capacity by 2030, pledged per Energy Compact Goals as part of COP26
NE BUSINESS BUREAU
AHMEDABAD, MARCH 21
Adani Green Energy Ltd (AGEL) on Monday announced that it has extended the Construction Financing Framework to US $1.64 Bn by raising a US $288 Mn facility for its under-construction renewable asset portfolio through definitive agreements signed with a group of leading international lenders.
The facility will initially finance the 450 MW hybrid portfolio of solar and wind renewable projectsthat AGEL is setting up in Rajasthan, India. In March 2021, AGEL had closed a US $1.35 Bn construction revolver facility in one of Asia’s largest project financing deals.
According to the definitive agreements, 7 international banks – BNP Paribas, Coöperatieve Rabobank UA, Intesa Sanpaolo SpA, MUFG Bank Ltd., Societe Generale, Standard Chartered Bank and Sumitomo Mitsui Banking Corporation – committed for the facility which is a certified green hybrid project loan. The extended pool of liquidity strengthens AGEL’s strategy to fast-track the development of its under-construction asset portfolio in sync with accelerating the energy transition.
“The construction facility is the key ingredient of AGEL’s capital management plan, enabling us to deliver on our focus on decarbonizing power generation,” said Vneet S Jaain, MD & CEO, AGEL.
“We are committed to sustainable growth and to catalyzing energy transition. AGEL has set a target of achieving 45 GW renewable energy capacity by 2030, representing 10% of the Govt of India’s 450 GW countrywide renewable energy target. Our development agenda is in sync with overall capital stewardship maintained through our capital management philosophy focused on sustainable growth.”
Underpinning AGEL’s infrastructure development is the project excellence framework that follows the highest standard of due diligence covering all international standard Environment, Social and Governance (ESG) aspects. AGEL is committed to the UN Sustainable Development Goals (SDGs) and has incorporated them into the Strategic Pillars of its ESG Strategy. AGEL’s sustainability roadmap is aligned with the goals of ensuring universal access to affordable, reliable and modern energy services and to substantially increasing the share of renewable energy in the global energy mix.
The Facility is also certified by Second Party Opinion provider ISS ESG based on AGEL’s sustainable strategy, alignment with Green Loan Principles and sustainability quality of the asset pool, with ‘very high’ transparency standards and significant contributions to SDG 7 (affordable and clean energy) and SDG 13 (climate action). As per the assessment, AGEL shows a high sustainability performance on key ESG issues in the Renewable Energy industry, representing the highest relative ESG performance.
Standard Chartered Bank acted as Mandated Lead Arranger, Bookrunner (MLAB), Documentation Bank and E&S Co-Ordinator bank. MUFG Bank, Ltd., and Sumitomo Mitsui Banking Corporation acted as MLABs, jointly acted as Co-Technical Advisors and Co-Green Loan Advisors. Further, BNP Paribas, Coöperatieve Rabobank UA, Intesa Sanpaolo SpA. and Societe Generaleeach acted as MLABs for the Facility.
Among other partners, Latham & Watkins LLP and Saraf & Partners were the borrower’s counsel. The lenders’ counsel were Linklaters and Cyril Amarchand Mangaldas.
