MUMBAI - Adani Green Energy Limited (AGEL) has secured a substantial $1.36 billion senior debt facility from an international banking consortium, marking a significant financial milestone that will propel the development of the world's largest renewable energy park in Gujarat, India. The funding, announced today, led to a notable surge in AGEL's stock price, which climbed by 14.4%.
The fresh capital injection is part of AGEL's broader strategy to expand its construction financing framework, which has now reached $3 billion since March 2021. The funds are earmarked for the ambitious Khavda renewable energy park project, which aims to start with an initial capacity of over two gigawatts.
Key banks involved in this deal include BNP Paribas (OTC:BNPQY), Coöperatieve Rabobank U.A., DBS Bank Ltd., MUFG Bank Ltd., and Standard Chartered (OTC:SCBFF) Bank. The latter two also took on significant roles as Co-Green structuring banks, with MUFG Bank additionally acting as Guarantee structuring bank.
The company's CEO, Amit Singh, highlighted the funding as evidence of AGEL's capabilities in developing strategic hybrid energy projects that align with India’s carbon neutrality ambitions by 2070. The investment is particularly notable following financial challenges faced by the Adani Group due to allegations made by Hindenburg Research.
In light of these allegations, the Supreme Court has concluded hearings but has reserved judgment. During the proceedings, skepticism was expressed towards taking investigative media reports at face value without thorough examination. This stance appears to have had a positive impact on Adani stocks.
Beyond this development, the Adani Group has been making strides in regaining financial stability with key refinancing moves and investments from entities such as GQG Partners and Qatar Investment Authority. Additionally, a US government agency has backed an Adani port project in Sri Lanka.
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