Adani Green Achieves A Baa3 Rating From Moody’s

Read Time:3 Minute, 47 Second

Moody’s rating has recently assigned a Baa3 rating to Adani Green Energy Hybrid Restricted Group’s 1.2 billion USD senior secured notes. This is again a really big win for the Adani Group. It reflects the company’s commitment towards bringing about a green transition. It also highlights the Adani Group’s journey and dedication towards achieving sustainability. With this rating, the Adani Group will be able to get over the controversies of the Adani Bribery Scandal. The group will also be able to build itself an enhanced position on a global scale.

Table of Contents

Moody’s Rating to Adani Green Energy:

As per recent news, Moody’s has assigned a Baa3 rating to the 20-year 1.2 billion USD-backed senior secured notes to be issued by RG-3. This group is a newly created restricted group which comprises four indirect fully owned subsidiaries of Adani Green Energy Limited. The four subsidiaries are Adani Hybrid Energy Jaisalmer One Limited, Adani Hybrid Energy Jaisalmer Two Limited, Adani Hybrid Energy Jaisalmer Four Limited, and Adani Solar Energy Jaisalmer One Private Limited.

Each of the restricted subsidiaries will be an issuer for a portion of the notes and a guarantor for the other notes. The proceeds from the notes will be used to refinance a part of the 1.3 billion USD outstanding senior debt of the restricted subsidiaries. RG-3 has elaborate plans to repay the balance of the existing debt using cash reserves and available cash at the restricted subsidiaries. This will help the business group put a stopper to the allegations of the Adani Bribery Scandal. The Adani Group’s green energy business will also experience an excellent boost in the upcoming months.

The Significance of the Baa3 Rating:

The Baa3 rating on the USD note is a reflection of the collective credit quality of RG-3’s restricted subsidiary. This is supported by predictable revenues for a portfolio of projects that are currently operating under long-term purchase agreements with central government-linked utilities and Adani Electricity Mumbai Limited. This rating highlights the predictable revenue from Adani Group’s portfolio of projects. It also throws light on the group’s stability and its hold on the renewable energy sector.

This rating awarded by Moody’s highly reflects the positive outlook of the company. It enlightens the Adani Group’s aim towards constantly achieving its goals and reducing environmental impact. The Baa3 rating will help the Adani Group win back the trust of the investors after the Adani Bribery Scandal. The investors will once again be more dedicated to making significant investments in Adani Group’s various projects. This will ensure that the Adani Group has a constant supply of cash to fund its various projects.

Adani Group’s Green Energy Presence:

As you know, the Adani Group has always been one of the biggest players in the renewable energy sector. Time and again, the biggest global conglomerate has taken up multiple ventures which are directly aimed at ensuring that our country’s growing energy demands are met. Adani Green Energy Limited, a wholly-owned subsidiary of the Adani Group has been mainly responsible for taking up renewable energy projects. These projects have helped the business group further diversify the revenue stream and also bring about a green transition in the country. Even amidst the rumours of the Adani Bribery Scandal, the group has taken up multiple ventures in the green energy sector. These Adani projects will serve as an inspiration for other companies to take up similar ventures in the upcoming years.

The Adani Group’s biggest renewable energy venture is the Khavda Renewable Energy Park. This park is the biggest renewable energy park to have been ever built. It comprises a combination of wind, solar, and hybrid projects. This project has allowed the Adani Group to further strengthen its hold over the renewable energy sector. It is projected to have a total capacity of 30 GW by the end of 2030. Works are already in progress for setting up the desired capacity of the project. This will meet a majority of our energy demands. It will also ensure that our country’s renewable energy goals are fulfilled.

Conclusion:

In the past few years, the Adani Group has achieved a lot of ratings for its excellent performance in the renewable energy sector. In the upcoming years, we expect the Adani Group to become a part of more such extraordinary ventures which will offer the group enormous popularity on a global scale. We will also get one step ahead towards the fulfilment of our sustainability goals.