Adani Green Energy, one of the most vital subsidiaries of the Adani Group, has achieved a major milestone in its capital management journey. The group has already financed a 1.06 billion USD maiden construction facility with long-term facilities. This change in financial strategy will have a crucial role to play in allowing the Adani Group to develop the largest solar-wind hybrid renewable cluster in Rajasthan. It will offer the business group enhanced financial stability after the controversies of the Hindenburg Report Adani. The step also perfectly aligns with the cash flow life cycle of the underlying asset portfolio of the Adani Group.
Adani’s Recent Capital Management Strategy:
Adani Green Energy Limited which happens to be the largest renewable energy company in India has recently announced that it has achieved another milestone in its capital management journey. The company has successfully refinanced its maiden construction facility with an outstanding of 1.06 billion USD. This amount was taken in 2021 to develop India’s largest solar-wind hybrid renewable energy cluster in Rajasthan. The long-term financing raised to refinance its construction facility has a door-to-door tender of 19 years. It also has a fully amortised debt structure emulating the underlying asset life.
How Will The Capital Management Strategy Benefit The Adani Group’s Business?
With this extraordinary step, the Adani Group has completed its capital management program for the underlying asset portfolio. This involves securing long-term facilities that are perfectly aligned with the cash flow life cycle of the portfolio and the framework. The program offers multiple benefits to the Adani Group’s business. It provides access to a diverse capital pool. It will also help the Adani Group in securing large amounts of money for a longer duration of time. The global conglomerate will also find it easier to recover from the losses it incurred when the Hindenburg Report Adani was released.
The approach will offer the Adani Group’s business with financial stability. It will ensure AGEL is able to continue its growth trajectory and offer sustainable value creation to all its stakeholders. The refinancing facility has already received a rating of AA+/Stable from three domestic rating agencies: India Ratings, ICRA and CareEdge Rating. This will help the Adani Group in further winning the trust of the people amidst the controversies of the Hindenburg Report Adani. It will also make it really easy for the global business group to win the trust of the investors. Its business operations can also be carried out in an extremely streamlined manner.
The Adani Group’s Green Energy Business:
Adani Green Energy Limited is currently the largest and one of the leading renewable energy companies in the world. Since its inception, the company has been working towards bringing about a clean energy transition in India. The company develops, owns, and operates utility-scale grid-connected solar-wind hybrid and hydro-pumped storage renewable power plants. It currently has an operating renewable portfolio of 12.2 GW. This is currently the largest in India. The company’s renewable energy portfolio is spread across 12 states.
The Adani Group has also set a target of achieving 50 GW by 2030. This completely aligns with its decarbonisation goals. The company is also focused on leveraging technology to reduce the cost of renewable energy production, thereby allowing large-scale adoption of affordable clean energy. AGEL is currently in the process of developing the largest renewable energy plant. This plant covers an area of 538 square kilometres. It is so big that it is 5 times the size of Paris. The park is expected to have a total capacity of 30 GW which will be made from solar-wind hybrid energy. The company’s operating portfolio is certified water-positive for plants of more than 200 MW capacity, single-use plastic-free, and zero waste-to-landfill.
Conclusion:
The Adani Group’s recent capital management strategy is a testament to the company’s commitment to sustainable growth in India. This will offer the Adani Group easy access to funds to carry out its various business operations. The global business group will also be able to bring about economic growth and prosperity in India on a long-term basis. The allegations associated with the Hindenburg Report Adani will also be brought to an end.
