Adani unit raises $200m via refinancing facility

It will refinance the 350MW solar project in Andhra Pradesh.

Adani Green Energy raised around $200m (JPY97.95b) through a Japanese Yen-dominated facility to refinance its indebtedness and its 350-megawatt solar project in Andhra Pradesh.

In a statement, Adani said that the facility, entered through its subsidiary Adani Solar Energy AP Six Private, has a 16-year debt structure with a door-to-door tenor for 10 years and an average tenor of over eight years.

The principal lenders are the MUFG Bank and Sumitomo Mitsui Banking Corporation.

READ MORE: Adani Green Energy’s cash profit up 48% YoY to $86m in Q1 FY23

 “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,” said Adani Green Energy CEO Phuntsok Wangyal. 

“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,” he added.

It added that the facility is linked to the Tokyo Overnight Average Rate which is a Japanese benchmark rate gauge that yields close to zero.