Adani Green Energy (AGEL) has secured a $400 million green loan for its under-construction 750 MW solar power projects in Rajasthan and Gujarat from a consortium of five international banks.

The consortium will provide financing for projects that will come online by November this year.

The 500 MW project being developed in Rajasthan has a long-term power purchase agreement (PPA) with the Solar Energy Corporation of India (SECI). The second project, with a capacity of 250 MW, is a standalone merchant power project implemented at Gujarat’s Khavda renewable energy cluster.

The construction facility, backed by international lenders such as Cooperative Rabobank, DBS Bank, Intesa Sanpaolo, MUFG Bank, and Sumitomo Mitsui Banking Corporation (SMBC), offers a syndicated guarantee-backed assurance program. This further aligns with the company’s procurement strategy, enabling a sustainable debt structure to finance merchant exposure.

AGEL said the green loan marks a milestone for the Indian renewable energy sector as it steers the industry’s transition to the next phase of market integration, with the commitment to deliver low-cost green electrons through the promotion of merchant market projects with the right financing structure.

Second-party opinion provider Sustainable Fitch highlighted the robustness of the 750 MW Solar Projects Green Loan Framework and alignment with four vital components of the Green Loan principles of 2023. The company claimed this assessment favors AGEL’s commitment to green energy solutions and accelerates India’s decarbonization goals.

Along with traditional PPAs, AGEL is diversifying its revenue streams to enhance project revenue and position itself favorably in the market for value creation, the company said.

AGEL holds an operational clean energy portfolio with a cumulative capacity of 10,934 MW. This includes 7,393 MW of solar, 1,401 MW of wind, and 2,140 MW capacity of wind-solar hybrid projects.

As part of its construction financing framework, AGEL secured a follow-on funding of a $1.3 billion senior debt facility last December.

In the third quarter of 2023, the company generated a revenue of $212.2 billion, driven by the addition of 1,154 MW capacity in the same year.

According to Mercom Capital Group’s newly released Q1 2024 Solar Funding and M&A Report, the solar sector secured $8.1 billion in corporate funding through 41 transactions in the first quarter of 2024, marking a 4% decrease from the $8.4 billion raised in 42 deals during the same period in 2023.