There is 2 trillion rupees money available for expansion, says Adani Green Energy
Adani Green Energy, the conglomerate’s renewable energy arm, would invest Rs 2 trillion by 2030 and has already earmarked funds for the entire project, Sagar Adani, executive director of the company, said on Tuesday.
“Full financing for the expansion to 50 GW from the current capacity of 10.9 GW has already been committed. The equity contribution of 25 percent has already been secured and the rest of the debt has been secured with lenders with revolving facilities,” Adani said in a media interaction in Ahmedabad. “We expect Rs 50,000 crore in Ebitda (earnings before interest, depreciation, taxes and amortization) by 2030,” Adani said.
“Our company bids for those renewable projects that meet our internal rates of return and until we get clarity on that, we will not go ahead with the project,” Adani said, adding that all his projects IRR are currently in the high teens . The company received an equity investment of $300 million from TotalEnergies, while the Adani family has subscribed to equity warrants of Rs 9,350 crore.
Of this, the Adani family has already invested Rs 2,338 crore, the balance of which will be received within 18 months of subscription.
“With this, we have also created the reserves to fully redeem the $750 million Holdco bond, which matures in September 2024, and also ensured that we have a one-off injection of equity to support growth to 50 to secure GW from its own funds by 2030. perspective,” said Amit Singh, CEO of Adani Green Energy.
The company has expanded its international pool of construction facilities from $1.64 billion to $3.4 billion, delivering another smooth run-up to the 2030 target, Singh said.
On its capital management plan, Singh said the company follows a disciplined approach that focuses on risk reduction and return optimization.
“With 25-year renewable PPAs, we essentially aim to align the debt maturity with the PPA term, thereby reducing debt service risks. We have developed access to diversified capital pools to ensure we have fully funded growth,” he said.
First print: June 25, 2024 | 11:35 PM IST