Adani: Adani Green Energy will redeem $750 million Holdco bonds eight months before maturity, this is the plan

Adani Green Energy, an Adani Group company, has announced plans to fully redeem 4.375 notes or Holdco Notes worth $750 million. The company will redeem these notes 8 months before the maturity period of September 9, 2024.

Promoters of Adani Green Energy Limited have received funds from preferential allotment of Rs 9,350 crore. Due to which the company has been able to get rid of these notes.

AGEN shareholders approved the preferential allotment with an overwhelming 99.9% majority on January 18, 2024, following which the promoters made a primary investment of Rs 2,338 crore (US$281 million) in AGEN last week. Funding of the reserves is complete after AGEN has set aside funds in the Senior Debt Redemption Account (SDRA) and other reserve accounts of the Holdco Notes.

The outstanding amount of the Holdco Notes will be fully securitized eight months prior to maturity through cash balances set aside as part of multiple reserve accounts securing the Holdco Notes, a press release from the company said. .

The repayment is based on the successful equity capital raising program of $1.425 billion, which includes a preferential issue of $1.125 billion from the promoters and $300 million from Total Energies.