Adani Green Energy raises USD 1.35 billion in one of Asia’s largest project financing deals. Adani Green Energy Limited (AGEL) raised a USD 1.35 billion debt package for its under-construction renewable asset portfolio through definitive agreements signed with a group of leading international lenders. The revolving project finance facility would initially finance the 1.69 GW hybrid portfolio of solar and wind renewable projects to be setup in four SPVs in the state of Rajasthan, India.
According to the agreement, 12 international banks – Standard Chartered Bank, Intesa Sanpaolo S.p.A, MUFG Bank, Sumitomo Mitsui Banking Corporation, Coöperatieve Rabobank U.A., DBS Bank Ltd., Mizuho Bank, Ltd., BNP Paribas, Barclays Bank PLC, Deutsche Bank AG, Siemens Bank GmbH and ING Bank N.V committed for the facility which will be the first certified green hybrid project loan in India. The new pool of liquidity strengthens AGEL’s strategy to fully fund its under-construction asset and augurs well for its vision of scaling capacity to 25 GW by 2025.
The facility is an important element of AGEL’s overall capital management plan and is key to fully funding its growth aspirations. The definitive agreement sets out a financing framework of agreed principles and procedures under which AGEL shall engage with the financiers to raise financing efficiently and expeditiously for all the future projects as per the agreed threshold parameters.
The facility underlines the overall development philosophy of Adani portfolio companies implemented through in-house developed project excellence framework committed to follow equator principles and the highest standard of due diligence covering all international standard Environment, Social and Governance (ESG) aspects.
Each of the lending partners signing up for this facility played a distinguished role. Standard Chartered Bank, for instance, acted as lead underwriter, Mandated Lead Arranger, Bookrunner (MLAB), environmental due diligence adviser, co-documentation bank and co-green loan coordinator for the facility. Likewise, MUFG Bank played the role of MLAB, technical bank, and co-green loan coordinator. Further, BNP Paribas acted as MLAB, co-documentation DBS Bank Ltd acted as MLAB, accounts bank and Mizuho was the MLAB, financial modelling bank. Intesa Sanpaolo S.p.A, Sumitomo Mitsui Banking Corporation, Coöperatieve Rabobank U.A, Barclays Bank PLC, Deutsche Bank AG, Siemens Bank GmbH and ING Bank N.V. acted as MLABs for the Facility.
Among other partners, while Latham & Watkins LLP and Luthra & Luthra were the borrower’s counsel, the lenders’ counsel were Linklaters and Cyril Amarchand Mangaldas. Tractebel Engineering Private Limited acted as the lender’s technical advisor, UL acted as the lenders energy yield assessment consultant, ERM acted as the lenders environmental & social consultant, Arcadis acted as the lenders environmental and social due diligence consultant, Deloitte acted as the financial model audit consultant, Marsh acted as the lenders’ insurance agent and KPMG acted as independent assurance provider for the Green Loan.