Adani Green Energy Ltd (AGEL), India’s largest renewable energy company, has announced that it has secured a $1.36 billion loan from a consortium of 12 international banks to finance its solar and wind projects in India. The loan is one of the largest ever for a renewable energy project in Asia and reflects the growing confidence of global investors in AGEL’s business model and growth prospects.
A landmark deal for green energy
The loan agreement was signed on December 4, 2023, and will have a tenor of up to 18 years. The loan will be used to refinance AGEL’s existing debt and fund its ongoing and future projects in India. The loan is backed by a partial credit guarantee from the US International Development Finance Corporation (DFC), which will enhance the credit quality and reduce the interest cost for AGEL.
The consortium of 12 banks includes Standard Chartered Bank, Barclays, BNP Paribas, Citibank, DBS Bank, Deutsche Bank, HSBC, ING Bank, J.P. Morgan, MUFG Bank, Societe Generale, and Sumitomo Mitsui Banking Corporation. The loan is denominated in US dollars and Indian rupees, and has a blended interest rate of around 4%.
AGEL’s Chief Financial Officer, Ashish Garg, said that the loan is a landmark deal for the green energy sector in India and demonstrates the strong support of the global financial community for AGEL’s vision and strategy. He added that the loan will help AGEL achieve its target of 45 GW of renewable energy capacity by 2030 and contribute to India’s climate goals.
A leader in renewable energy
AGEL is a part of the Adani Group, one of India’s largest and most diversified conglomerates. AGEL is the largest renewable energy company in India, with a current project portfolio of 20,434 MW, of which 8,404 MW is operational and 12,030 MW is under construction. AGEL has a presence in 12 states across India and operates solar, wind, and hybrid power plants.
AGEL has also partnered with global energy giants such as TotalEnergies and Qatar Investment Authority to expand its footprint and access new markets. AGEL aims to become the world’s largest renewable energy company by 2030 and a net-zero carbon company by 2050.
AGEL’s Chairman, Gautam Adani, said that the loan is a testament to AGEL’s commitment to building a cleaner and greener future for India and the world. He said that AGEL is proud to be a part of India’s energy transition and will continue to leverage its technological and financial capabilities to deliver affordable and reliable green energy to millions of people.
