Rs 2 trillion funds tied up for expansion, says Adani Green Energy
Adani Green Energy, the renewable power arm of the conglomerate, would be investing Rs 2 trillion by 2030 and has already tied up funds for the entire project, Sagar Adani, executive director of the firm, said on Tuesday.
“The entire funding for the expansion to 50 GW from the current capacity of 10.9 GW has been tied up already. The equity contribution of 25 per cent is already in and the rest of debt is tied up with lenders with revolving facilities,” Adani said in a media interaction in Ahmedabad. “We are expecting Rs 50,000 crore of Ebitda (earnings before interest, depreciation, tax and amortisation) by 2030,” said Adani.
“Our company is bidding for those renewable projects which meet our internal rate of returns and till we don’t have a clarity on that, we are not going ahead with the project,” Adani said, adding that all its projects IRR are currently in the high teens. The company received equity investment of $300 million from TotalEnergies while the Adani family has subscribed to equity share warrants of Rs 9,350 crore.
Of this, the Adani family has already invested Rs 2,338 crore with balance to be received in 18 months of subscription.
“With this, we also put in place the reserves to fully redeem the Holdco bond of US$ 750 mn due in September 2024 and also made sure to have the one time injection of equity to secure the growth up to 50 GW by 2030 from equity perspective,” said Amit Singh, CEO of Adani Green Energy.
The company has increased its international construction facility pool from $1.64 billion to $3.4 billion once again providing a smooth run-way to 2030 target, Singh said.
On its capital management plan, Singh said the company is following a disciplined approach that focuses on de-risking and return optimisation.
“With 25-year renewable PPAs, we essentially aim to align the debt maturity with the PPA term thereby de-risking the debt servicing. We have developed access to diversified pools of capital to make sure that we have a fully funded growth,” he said.
First Published: Jun 25 2024 | 11:35 PM IST