Total may lead Adani plan to raise $1.5 bn for green power

livemint.com:

MUMBAI : Adani Green Energy Ltd, which is planning to raise $1.5 billion, may secure a big chunk of it from French energy giant TotalEnergies SE, two people aware of the matter said. The Gautam Adani-led group’s renewables firm will use $750 million of this amount to repay bonds. “Adani Green has got an approval to raise $1.5 billion this fiscal for capex and debt repayment.

Of this, a major amount will come from TotalEnergies, which owns 20% in Adani Green," said the first person. TotalEnergies on Wednesday invested $300 million to create an equal joint venture, named Adani Green Energy Twenty Three Ltd. “Of the remaining $1.2 billion too, a major investment will come from Total.

Of the total amount, around $750 million will be used to repay the 4.375% coupon dollar bonds maturing in September 2024. Rest of the amount will be used to ramp up renewable capacities. TotalEnergies has invested $2.8 billion in Adani Green, which is the largest investment in a single group in the renewables space in India by Total," said the first person.

The development settles doubts whether Total will continue to invest in Adani Group after allegations of fraud earlier this year, especially since Adani’s $50 billion green hydrogen project announced last year was envisaged with Total as the first major strategic partner. A Bloomberg report in August had said Adani may not tie up with TotalEnergies as of now for developing the green hydrogen project in India. Total’s latest move comes almost seven months after the French firm decided to put all future investments in Adani firms on hold in February, following a 24 January report by US-based short-seller Hindenburg Research that accused the Adani Group of “pulling the largest con in corporate