AGEL Secures $400 Million for Solar Projects in Rajasthan and Gujarat

Adani Green Energy Ltd (AGEL), India's leading renewable energy firm, has raised $400 million from a consortium of international lenders to fund its 750 megawatt (MW) solar power projects in Rajasthan and Gujarat. This financing milestone was announced by the company on Wednesday. The projects include a 500 MW capacity in Rajasthan, with a long-term power purchase agreement (PPA) with Solar Energy Corporation of India, and a standalone 250 MW merchant power project in Khavda, Gujarat, the world’s largest renewable energy cluster.

AGEL's strategy involves diversifying revenue streams through merchant energy markets, in addition to traditional PPAs. The company highlighted that banks are becoming more comfortable financing merchant projects, indicating a shift in the international banking market’s sentiment. This financing was provided by Cooperative Rabobank U.A., DBS Bank, Intesa Sanpaolo S.p.A., MUFG Bank, and Sumitomo Mitsui Banking Corporation, showcasing global financial institutions' confidence in AGEL's initiatives.

AGEL's shares closed at Rs 1,755 per share on Wednesday, with a total market valuation of Rs 2.78 trillion. The company plans to invest Rs 1.3 trillion in 2024-25 to expand its capacity across its portfolio companies. AGEL aims to raise up to Rs 25,000 crore in equity this financial year to support these projects, with Rs 34,000 crore allocated specifically for expanding facilities at the Khavda site in Gujarat.

The $400 million construction facility includes a syndicated guarantee-backed assurance program aligned with AGEL’s procurement strategy. This transaction underscores AGEL’s commitment to maintaining a sustainable debt structure as part of its capital management plan for financing merchant exposure.

AGEL's green loan, facilitated through its subsidiaries, supports the company’s growth and reinforces its dedication to sustainability. AGEL operates a diverse portfolio of 10,934 MW, including 7,393 MW of solar capacity, 1,401 MW of wind capacity, and 2,140 MW of wind-solar hybrid capacity, solidifying its position as a renewable energy leader.

News by Rahul Yelligetti