Adani Green Energy Ltd. announced a cash-backed redemption plan for the $750 million worth of bonds eight months prior to maturity.
The outstanding $750 million worth of holding company notes “shall be fully secured through cash balances set aside as part of various reserve accounts”, according to the company’s redemption plan. The 4.375 notes are due on Sept. 9. this year
The redemption plan includes:
$169 million in the reserve accounts and internal accruals. This includes debt service reserve account, hedge reserves and Interest on reserve account.
$300 million from investment by TotalEnergies in 1,050 MW joint venture. The funds are already lying in the senior debt redemption account of the Holdco notes.
$281 million, (about Rs 2,338 crore) proceeds from initial tranche of the promoter preferential allotment. It is expected in the end of January and the funds shall be deposited into the senior debt redemption account of the Holdco notes.
With this outcome, Adani Green has “fully defeased” the Holdco notes, eight months prior to the maturity, the company said. The has resulted in “significant deleveraging in AGEL (Adani Green) by way of equity proceeds while continuing to deliver on the growth plans”.