Adani Green will be acquiring SB Energy's 5 GW India renewable power portfolio for USD 3.5 billion. SB Energy is a joint venture between SoftBank and the Bharti Group. Jugeshinder Singh, Group CFO of Adani Group discussed this.

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Adani Green’s portfolio is on track to attain 25 gigawatts (GW) by 2025. “Currently approximately 3.4 GW is operating. With this acquisition, the company will achieve 25 GW capacity under construction this year, which is four years ahead of schedule,” he said.

“This acquisition will take our operating capacity to 5 GW and near-term under development another 5 GW, so by the middle of next year we should be 10 GW operating capacity and 15 GW under development,” he added.

“All of our businesses have a proper capital management plan. So we were already planning for a 25 GW portfolio. This is a fully-funded acquisition, so it is part of our normal capital management planning,” he shared.

In terms of debt profile, he mentioned, “We are classically funded as an infrastructure utility, so our debt is in the actual asset SPVs. so this acquisition will not materially alter the debt profile of Adani Green energy. All of the debt is within the project company. They are funded in a proper ring-fenced manner, our balance sheet rises but it does not change our debt metrics.”

On account of this acquisition, he expects the SPV level debt to rise by Rs 20,000 crore.

“On our own development plan, we will have another close to Rs 26,000 crore on SPV level debt. So it will take our existing debt number to around Rs 47,000 crore mark, majority of which will be in the capital markets and very little of that will remain in the banking market,” he shared.

On ports business, he said, “Currently our target is 500 million tonnes, we are pretty much on track to achieve that and hopefully be ahead of that.”

For the full interview, watch the accompanying video

(Edited by : Abhishek Jha)

First Published:May 19, 2021 1:00 PM IST