Adani Green Energy shares surge 7% as Adani firm seals $1.36 billion funding

Shares of Adani Green Energy Ltd jumped 7 per cent in Tuesday's trade after India’s largest renewable energy player announced $1.36 billion in a follow-on funding to enhance its funding pool to $3 billion, as part of its Construction Financing Framework, since the initial project financing in March 2021. The Adani group stock also gained amid a media report suggesting the Gautam Adani-led firm was considering an additional $22 billion in investments towards expansion of its capacity by more than five times by 2030.

In a release, Adani Green Energy said the green loan facility will play a pivotal role in enabling the development of the company's next milestone- the world’s largest renewable energy park at Khavda in Gujarat.

"The funding also marks a significant achievement to develop 2,167 MWat Khavdain the initial stage and shall be the stepping-stone for the future development of the Khavda renewable site. The world’s largest RE park at Khavda will not only enable AGEL’s vision of 45 GW operating renewable capacity by 2030 but will also play a critical role in India’s net zero journey," Adani Green Energy told stock exchanges.

The stock rose 6.64 per cent to hit a high of Rs 1198.The stock still needs an 82 per cent rally to revisit its 52-week high of Rs 2,185.30 hit in January this year.

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"The definitive agreements have been executed with 8 leading international banks, which are all returning lenders and instrumental in establishing AGEL’s Construction Financing Framework since March 2021," Adani Green Energy said.

The funding is an important element of Adani Green's capital management plan and accelerated development program, fostering accretive growth.

"Adani Green's successful track record with overall assurance structure of the construction framework are instrumental in securing the trust of the international lending community for the enhanced commitments.

Vneet S Jaain, MD at Adani Green Energy Ltd said the extension of construction financing framework would give the development of Khavda site a boost. The site is poised to become the world’s largest renewable energy par kwith the generation capacity of 17 GW, Jaain said.

"It will be a catalyst in the accelerated completion of the development activities at the project site. We thank the consortium for reposing faith in our project execution capabilities and strategic growth vision aligned to India’s decarbonization goals. We will continue the growth momentum to deliver the projects and support India’s clean energy transition," he said.

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