Adani Green Energy raises $1.36 billion funding for world’s largest renewable energy park in Gujarat

India’s largest renewable energy player, Adani Green Energy Ltd (AGEL), on Tuesday (December 5, 2023) announced follow-on funding of USD 1.36 billion, which will help the company develop the world’s largest renewable energy park in Gujarat.

The funding also gave a boost to its Construction Financing Framework, which is backed by a consortium of renowned international banks.

The funding also marks a significant achievement to develop 2,167 MW at Khavda in the initial stage and shall be the stepping-stone for the future development of the Khavda renewable site.

The world’s largest RE park at Khavda will not only enable AGEL’s vision of 45 GW operating renewable capacity by 2030 but will also play a critical role in India’s net zero journey.

AGEL secures green loan from international banks for construction financing

The definitive agreements have been executed with eight leading international banks, which are all returning lenders and instrumental in establishing AGEL’s Construction Financing Framework since March 2021.

The green loan facility has been extended by consortium of lenders which include– BNP Paribas, Coöperatieve Rabobank U.A., DBS Bank Ltd, Intesa Sanpaolo S.p.A., MUFG Bank, Ltd., Societe Generale, Standard Chartered Bank and Sumitomo Mitsui Banking Corporation.

Vneet S Jaain, MD, Adani Green Energy Ltd, said: “The extension of Construction Financing Framework to USD 3 bn is a historic landmark and will boost the development of Khavda site which is poised to become the world’s largest Renewable Energy Park with the generation capacity of 17 GW. It will be a catalyst in the accelerated completion of the development activities at the project site. We thank the consortium for reposing faith in our project execution capabilities and strategic growth vision aligned to India’s decarbonization goals.”

Amit Singh, CEO, Adani Green Energy Ltd, said, “We believe, Construction Financing Framework is an essential element of our development agenda and supports our unwavering commitment to build a sustainable future. The funding not only validates our expertise as a developer and operator of strategically vital renewable energy projects but also demonstrates the trust by our financiers in our strategic vision. We are committed to expand our renewable power capacity to 45 GW by 2030 underscoring our dedication to mitigate climate change risks.”

Key banks play vital roles in AGEL’s green loan

DBS Bank Ltd, MUFG Bank, Ltd, Standard Chartered Bank and Sumitomo Mitsui Banking Corporation acted as Co-Green structuring banks whereas Coöperatieve Rabobank U.A. acted as Documentation and Structuring Bank and MUFG Bank, Ltd. acted as Guarantee structuring bank.

Latham & Watkins LLP and Saraf & Partners were the borrower’s counsel. The lenders’ counsel were Linklaters and Cyril Amarchand Mangaldas.

(The article is published under a mutual content partnership arrangement between The Free Press Journal and Connected to India)