Adani Green Energy Ltd, the renewable energy arm of the Adani Group, is in advanced discussions with a consortium led by the State Bank of India (SBI) to secure funding between ₹8,000 crore and ₹10,000 crore. This amount will be used to refinance a $1.1 billion foreign currency loan that is due in March 2025, according to sources familiar with the matter.
Loan Details and Refinancing Plan
The $1.1 billion loan was initially raised by Adani Green as a construction finance facility from a group of foreign banks. The funds were used to develop 1,390 megawatts (MW) of hybrid solar and wind projects in Rajasthan. The company is now looking to replace this short-term foreign currency loan with long-term domestic project debt.
“Discussions with the consortium of public sector banks are in the final stages. The foreign currency loan will be refinanced with an 18–20-year project loan from domestic lenders,” a source revealed.
Background: Scrapped Bond Offering and DOJ Indictment
This refinancing move comes after Adani Green had to cancel a $600-million dollar bond offering in November 2024. The bond sale was called off following a U.S. Department of Justice (DoJ) indictment against Gautam Adani, Sagar Adani, and Vineet Adani over allegations of bribery related to power supply contracts in India.
In its November exchange filing, Adani Green informed shareholders that its subsidiaries had decided not to proceed with the proposed U.S. dollar bond issuance due to the criminal indictment.
Growing Interest from Domestic Lenders
During an analyst call on January 24, Adani Green’s CEO, Amit Singh, stated that domestic lenders have shown strong interest in financing the company’s projects.
“We are in an advanced stage of discussions for refinancing the project loan, which is due at the end of this quarter. We expect to announce its completion in the coming weeks,” Singh said. He added that domestic banks are eager to collaborate with the company, seeing it as a long-term opportunity.
Project Details and Power Purchase Agreements
The foreign currency loans set for refinancing are tied to three entities—Adani Hybrid Energy Jaisalmer One Ltd, Adani Hybrid Energy Jaisalmer Two Ltd, and Adani Hybrid Energy Jaisalmer Four Ltd. These hybrid solar and wind projects were commissioned between 2022 and 2023, with a power mix of 65% solar and 35% wind energy.
The projects have secured long-term 25-year power purchase agreements (PPAs) with Solar Energy Corporation of India Ltd (SECI) and Adani Electricity Mumbai Ltd. Of the 1,390 MW total capacity:
- 690 MW is contracted with SECI
- 700 MW will be supplied to Adani Electricity Mumbai Ltd
Adani Green’s Renewable Energy Expansion Plans
Adani Green currently operates around 10 gigawatts (GW) of renewable energy capacity, with an additional 5 GW expected to become operational by October 2025. The company has set a long-term target of achieving 45-50 GW of renewable energy capacity by FY28, reinforcing its position as a leading player in India’s green energy sector.
