On Thursday, Adani Green Energy Ltd. (AGEL) was able to obtain $400 million, or around Rs 29,600 crore, from a group of five top international banks.

Its ongoing 750 MW solar power projects in Gujarat and Rajasthan would be funded with the help of the funding.

It will help these solar projects get completed and put into service; operations are scheduled to start in November 2024.

With a 500 MW capacity and a long-term power purchase agreement (PPA) with the Solar Energy Corporation of India (SECI), one of the major projects is situated in Rajasthan.

The second project is a 250 MW independent merchant power facility within the largest renewable energy (RE) cluster in the world, located in the Khavda district of Gujarat.

Cooperative Rabobank UA, DBS Bank Ltd., Intesa Sanpaolo SpA, MUFG Bank Ltd., and Sumitomo Mitsui Banking Corporation are among the lenders in the partnership.

For the Adani Group’s ambitious growth goals in the renewable energy sector, this finance deal is a significant step forward.

In keeping with AGEL’s strategic procurement strategies, the $400 million construction facility includes a syndicated guarantee-backed assurance program along with customized financial options. As part of AGEL’s capital management strategy, this transaction creates a sustainable loan structure that expressly addresses financing for merchant exposure.

According to a news release from AGEL, this significant achievement would help the renewable energy sector in India advance toward better market integration and more affordable green energy production.

“It marks a milestone for the Indian RE sector as it steers the industry’s transition to the next phase of market integration, with the commitment to deliver the low-cost green electrons through the promotion of merchant market projects with the right financing structure…,” said AGEL in a press release.

The green loan, made possible by AGEL’s subsidiaries, highlights the company’s dedication to sustainable practices while assisting in its expansion aspirations. The second-party opinion provider Sustainable Fitch praised AGEL’s 750 MW solar project for its transparency and strength of Green Loan Framework, emphasizing compliance with the Green Loan Principles of 2023.

This assessment is in line with the UN Sustainable Development Goals (SDGs), especially SDG 7 (cheap and clean energy), and demonstrates AGEL’s unwavering commitment to renewable energy solutions. It also advances India’s journey towards a lower carbon future.

Currently operating the largest portfolio of renewable energy in India, AGEL’s 10,934 MW provides clean, affordable, and dependable power to the national grid.

There are 2,140 MW of wind-solar hybrid capacity, 1,401 MW of wind, and 7,393 MW of solar power in this operational portfolio.

For the borrower in this financing transaction, Linklaters and Cyril Amarchand Mangaldas represented them, while Latham & Watkins LLP and Saraf & Partners supplied legal guidance.