MUMBAI: Adani Green Energy Ltd. plans to raise up to $ 12 billion through sales of green bonds over the next four to five years to fund billionaire Gautam Adani’s plan to make it the world’s biggest renewable energy player.
This will be India’s largest sale of green paper and it is expected to catalyse the country’s lacklustre green bond market in sync with the government’s focus on solar and wind energy. Last year, the sale of global green bonds and loans rose 50% to an estimated $ 255 billion, making it an attractive option for solar and wind energy companies.
“AGEL, with current issued bonds, planned issuance of under-development assets and committed pipeline of assets, will end up with close to $ 10 to 12 billion of green bonds over the next four to five years,” Adani group CFO Jugeshinder Singh told ET. “This is consistent with our public commitment of 25,000 MW capacity by 2025.”
The proposed green bond sale is likely from May next year, with the company raising $ 2-3 billion annually. The green bond proceeds are mandated to be used to produce non-conventional energy.
Climate Bonds Initiative, an international body that did not certify Adani Green’s proposed offshore green bond sale in May last year, now hinted at approving future issuances. Adani Green raised $ 362.5 million in October through the same route.
“We incredibly support you on renewable plans,” Sean Kidney, cofounder of Climate Bonds Initiative, said in an exclusive webinar on non-conventional energy organised by Climate Bonds, FICCI and MUFG Bank. “We applaud what you are doing on the solar side. Our job is to push you on the coal side and welcome you on the green side.”
Earlier, the Adani Group CFO took a dig at Climate Bonds, citing Adani Green’s expansion in renewable energy. In the past decade, the business has changed, with the share of fossil fuel sliding. Renewable power, transmission, distribution and logistics now collectively form almost three-fourths of the business.
“We had a bitter experience that Sean’s group did not certify it as a green issuance,” said Singh who was one of the panellists in the webinar.
Adani Green aims to be the world’s largest renewable energy company by 2025. Last week, the Solar Energy Corporation of India awarded Adani Group’s renewable energy arm a project to build an 8 giga-watt solar power plant and 2 GW of solar cell and module manufacturing capacity over the next five years. The tender award was the world’s largest in the solar energy space.
With this win, Adani Green will have 15 GW of capacity under operation, construction or contract. Besides, the company will raise $ 5-6 billion through vanilla foreign currency bonds to help develop India’s transmission network to cope with renewable power.
“We are committed to both fronts: producing and delivering of power,” Singh said.
In past one month, Adani Green Energy shares have surged almost 50%, outpacing the BSE Energy index, which rose 9.4%.