Adani Green Energy jumps 18% on securing $1.36bn funding
What's the story
Adani Green Energy Ltd. (AGEL) recently secured an additional $1.36 billion in funding through a senior debt facility, bringing its total construction financing framework to $3 billion.
This funding, provided by a group of international banks, will be used to develop the world's largest renewable energy park in Khavda, Gujarat.
Following the news, Gautam Adani-led Adani Green Energy's shares skyrocketed by over 18% to touch a high of 1,340.
Details
Consortium of international banks backs AGEL's funding
The consortium supporting AGEL's funding includes BNP Paribas, DBS Bank Ltd, Societe Generale, Standard Chartered Bank, and Sumitomo Mitsui Banking Corporation.
Anupam Misra, Head - Group Corporate Finance (Adani Portfolio), mentioned that this latest funding marks the third round of participation from lenders for Adani Green Energy and sets a successful precedent for future fundraises.
What Next?
Funds will be used for development of renewable energy facility
The funds will be used for the initial development of a 2,167 MW renewable energy facility at Khavda.
Vneet Jaain, MD & CEO of Adani Green Energy Ltd, said that this will accelerate the development of the Khavda site, which is set to become the world's largest Renewable Energy Park with a generation capacity of 17 GW.
The project will serve as a vital stepping-stone for the site's future expansion.
Insights
Aligning with AGEL's vision and India's net zero journey
The Khavda project aligns with AGEL's goal of reaching 45 GW of operating renewable capacity by 2030.
It will also play a significant role in India's journey toward net zero emissions.
This announcement comes as global economies gather at the 28th United Nations Climate Change Conference (COP28) to discuss their strategies for energy transition and emissions-reduction goals.