Adani Green Energy Ltd. on Thursday said it has raised nearly $200 million through its subsidiary, Adani Solar Energy AP Six, to refinance existing debt.
The funds will be used to refinance the 350 MW solar project in Andhra Pradesh.
“The facility comprises 27,954 million Japanese yen amortising project loans, assessing the 16 years debt structure with a door-to-door tenor of 10 years and an average tenor of more than 8 years," according to company statement.
The project loan facility is supported by MUFG Bank and Sumitomo Mitsui Banking Corp. with equal participation, a company statement said. Latham & Watkins LLP and Cyril Amarchand Mangaldas acted as legal counsels for the transaction.
The company added that the project loan facility is supported by its ‘strong’ relationship with its two core relationship banks - MUFG Bank Ltd. and Sumitomo Mitsui Banking - with equal participation.
The facility is linked to Tokyo Overnight Average Rate (TONA), a Japanese benchmark rate gauge, which yields close to zero highlighting the appeal to broaden the alternative pools of capital providing relatively competitive interest rates.
The company is committed to have access to long-term capital without depleting its growth capital and will continue to look at multiple alternative pools of capital to have the sustainable funding solution to spearhead India’s energy transition.
The refinancing facility is consistent with AGEL’s strategy of securing long term financing establishing the debt structure in conformity to underlying asset life for its operational assets.
“This is an excellent result for AGEL, showing strong support from our lenders and demonstrates our ability to access bank debt at competitive terms in sync with the underlying asset development model to a provide long-term solution," said Phuntsok Wangyal, CFO, Adani Green Energy.
“The facility demonstrates AGEL’s pro-active and continued approach to access liquidity against the backdrop of a challenging interest rate environment in the broader markets, providing the long-term solution. With lower benchmark rate, lesser margin and historical low swap rates, this provides significant flexibility and a competitively priced funding solution for AGEL’s high grade renewable asset portfolio."
Shares of Adani Green Energy traded at ₹2,110.45 apiece, down 0.29%.