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The developer’s three arms, which correctively have 930 MW of operational solar power projects, have raised INR 612.30 crore (US$81.96 million) through their maiden domestic bond issuance. The proceeds will be utilized to part-refinance existing rupee term loan bearing higher interest cost.

Adani Green Energy today announced its three subsidiaries have raised INR 612.30 crore by their maiden domestic bond issuance, on a private placement basis.

The issuer subsidiaries – Adani Green Energy (UP) Ltd, Prayatna Developers Pvt Ltd, and Parampujya Solar Energy Pvt Ltd – collectively own a 930 MW portfolio of operational solar power projects.

“The Rated, Listed, Secured, Redeemable, Non-Convertible Debentures (NCDs) of the face value of Rs 10,00,000 each, in multiple series, have an average annualized coupon rate of 7.83% p.a. (fixed) and a tenure up to 12 years,” read Adani Green statement.

The proceeds from the NCDs will be utilized to part-refinance existing rupee term loan bearing higher interest cost. The NCDs are rated AA/Stable by CRISIL Limited and AA(CE)/Stable by India Ratings. These will be listed on the Wholesale Debt market segment of BSE Limited.

“Optimization of the cost of borrowing is key to our capital management program and this transaction reinforces the Company’s strategy,” said Vneet S Jaain, managing director and chief executive officer of Adani Green Energy Ltd. “We are encouraged by the robust support from the finance community, which recognizes the strength of the Company’s business model and our capital management approach. We could manage this fundraising at favorable terms. This puts the Company on a more solid platform for long-term growth.”

The success of the domestic debt market issue will open up a new source of funding, allowing for more flexibility in capital structure while also lowering interest costs.