Adani Green Energy Limited (AGEL) has unveiled a comprehensive plan for the redemption of its USD 750 million 4.375 notes due on September 9, 2024, termed as the Holdco Notes. This redemption plan, announced today, guarantees the complete coverage of outstanding amounts through various reserve accounts.
The plan outlines specific sources that will secure the outstanding amounts of the Holdco Notes: Reserve Accounts and Internal Accruals: An amount totaling USD 169 million, inclusive of the Debt Service Reserve Account, Hedge Reserves, and Interest on Reserve Account, has been designated for this purpose.
TotalEnergies 1,050 MW JV Consideration: A transaction completed on December 26, 2023, has contributed USD 300 million, currently held in the Senior Debt Redemption Account (SDRA) of the Holdco notes.
Proceeds from Initial Tranche of the Promoter Preferential Allotment: Expected to be approximately USD 281 million (equivalent to INR 2,338 crores), this sum is anticipated to be received by the end of January 2024 and will be deposited into the Senior Debt Redemption Account (SDRA) of the Holdco notes. The collective amount from these sources totals USD 750 million, effectively ensuring the full security of the Holdco Notes eight months before their maturity date. This proactive measure by AGEL marks the complete defeasance of the Holdco Notes, significantly reducing debt while maintaining focus on growth initiatives.
This redemption strategy is bolstered by AGEL’s successful equity capital raise program, which garnered USD 1.425 billion. This includes USD 1.125 billion from preferential issuances by promoters and USD 300 million from the TotalEnergies JV. The success of this capital raise signifies robust investor interest and strategic partnerships, demonstrating a firm commitment to AGEL’s ambition of achieving 45 GW by 2030.
India Launches Mode 2A Incentive Scheme To Accelerate Green Ammonia Production In Pursuit Of Sustainable Hydrogen. The Indian government has unveiled the Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme, specifically focusing on Component II: Incentive Scheme for Green Ammonia Production and Supply under Mode 2A. This initiative is a crucial part of the National Green Hydrogen Mission, which has received an outlay of ₹19,744 crore up to the financial year 2029-30, with a significant allocation of ₹17,490 crore for the SIGHT program.
The primary goal of the scheme is to boost the production of Green Ammonia in India, aiming to enhance its cost competitiveness compared to fossil-based alternatives and promoting large-scale utilization. The financial backing for this initiative will be sourced from the budget allocated to the National Hydrogen Mission Head.
The Ministry of New and Renewable Energy (MNRE) is set to spearhead the implementation of this scheme through the Solar Energy Corporation of India Limited (SECI), serving as the implementing agency. SECI will play a pivotal role in aggregating demand and initiating a competitive bidding process for the production and supply of Green Ammonia, with incentives being a key factor in the selection process.
Under Mode 2A of the scheme, SECI will aggregate demand and call for bids, ensuring the production and supply of Green Ammonia at the lowest cost through a competitive selection process. The implementation of the scheme will be transparent and subject to a rigorous selection process, overseen by MNRE and executed by SECI. SECI’s responsibilities include the examination of applications, issuance of acknowledgments and letters of award, verification of incentive disbursement claims, and submission of quarterly progress reports to MNRE.
To be eligible for incentives, bidders must adhere to the criteria outlined in the ‘National Green Hydrogen Standard’ notified by MNRE. The incentive will be provided directly in terms of ₹/kg of Green Ammonia produced and supplied for three years. The incentive amounts are set at ₹8.82/kg in the first year, ₹7.06/kg in the second year, and ₹5.30/kg in the third year.
The selection process for beneficiaries involves competitive bidding, with the least quoted price being the determining factor. The net worth of the bidder, capacity quoted for Green Ammonia supply, and adherence to specified criteria are essential factors in the selection process. Bids will be invited for an initial capacity of 5,50,000 MT per annum of Green Ammonia under Tranche I of Mode 2A, with the possibility of additional capacity in subsequent tranches.
SECI may specify minimum and maximum capacity limits, and any unallocated capacity may be carried over to the next tranche. Allocated capacity remains constant over three years, and incentives are…
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