It is important to emphasise that the transaction is still in progress, and the terms may undergo changes. If the deal is finalised before late December, it could rank among the top 20 major currency loans in Asia for the year, according to data compiled by Bloomberg.
This potential borrowing initiative follows Adani Group's recent successful securing of a $3.5 billion funding package, which was used to refinance the debt related to the acquisition of Ambuja Cements Ltd. and ACC Ltd. It indicates a positive shift in investor confidence for the conglomerate, which faced a significant shortseller attack earlier this year, leading to some banks hesitating on debt refinancing.
Earlier this week, Adani Green Energy recently announced impressive financial results for the quarter and the first half of the fiscal year ending on September 30, 2023. AGEL, boasting an operational capacity of 8,316 MW (including 9,021 MW AC capacity), continues to maintain its position as India's largest operational renewable energy portfolio.
One of the standout achievements in AGEL's performance is the substantial increase in energy sales, which soared by 78% year-on-year, reaching 11,760 million units in the first half of FY24. This remarkable growth is attributed to substantial capacity expansions and enhanced Capacity Utilisation Factors (CUF) across its solar, wind, and hybrid portfolios.
The CUF for the solar portfolio witnessed a 90-basis points improvement year-on-year, reaching 25.2 per cent in the first half of FY24. This progress was driven by improved plant availability and increased solar irradiation. Similarly, the wind portfolio's CUF recorded a significant enhancement of 360 basis points year-on-year, reaching 40.2% during the same period. This improvement was facilitated by consistent wind speeds and notable enhancements in grid availability.
The company's outstanding revenue growth, EBITDA, and cash profits can be primarily attributed to a capacity increase of 1,592 MW over the past year and improved CUF. AGEL maintains an industry-leading EBITDA margin, supported by its exceptional Operations and Maintenance (O&M) practices, which enable higher electricity generation at reduced O&M costs.
AGEL's Run-rate EBITDA currently stands at a robust Rs. 7,645 crores, with a Net Debt to Run-rate EBITDA ratio of 4.99x as of September 2023, compared to 5.9x the previous year. This ratio comfortably remains well within the stipulated covenant of 7.5x for the holding company's bonds.
