Adani Green Energy Limited · NSE:ADANIGREEN
Adani Green Energy — Debt Investor Presentation (February 2024)
41 slides from Adani Green Energy's debt investor presentation, February 2024
Slide 1: RG-1 Roadshow Presentation Feb-2024
1 RG-1 Roadshow Presentation Feb-2024
Slide 2: Confidentiality and Disclaimer
Confidentiality and Disclaimer Not for release, publication or distribution, in whole or in part, directly or indirectly, in the United States except to “Qualified Institutional Buyers” (“QIBs”) in reliance on Rule 144A (“Rule 144A”) under the U.S. Securities act of 1933, as amended (the “Securities
Slide 3: RG1: Summary of Terms
RG1: Summary of Terms 3 subsidiaries of Adani Green Energy Twenty-three Limited (“Parent”) a 50:50 JV between AGEL and TotalEnergies issuing green bonds under a single ISIN for each 144A/ Reg The Co-Issuers S tranche: • Prayatna Developers Private Limited (“PDPL”); Parampujya Solar Energy Private Li
Slide 4: Existing Bond Key Terms and Performance
RG1: Existing Bond Key Terms and Performance Structure Existing Structure RG1 Performance: Delivered robust performance despite global disruptive events – US$ Format 500&Mn Listing: 144A144A / REG / REG S S | SGX Stipulated/ Actual COVID-19 period Russia-Ukraine Short seller event US- Banking Rising
Slide 5: Table of Contents
Table of Contents 1 Adani Portfolio and TotalEnergies Partnership 2 Adani Green Energy Limited (AGEL) – Overview 3 RG 1 : Overview 4 RG 1 : Proposed Credit Structure Annexure A Annexures B Annexures C
Slide 6: Adani Portfolio and TotalEnergies Partnership
01 Adani Portfolio and TotalEnergies Partnership
Slide 7: Adani Portfolio: A World Class Infrastructure & Utility Portfolio
Adani Portfolio: A World Class Infrastructure & Utility Portfolio Flagship Infrastructure & Utility Core Portfolio Primary Industry Emerging B2C Materials, Metal & Incubator Energy & Utility Transport & Logistics Direct to consumer Mining (72.6%) (56.4%) (73.2%) (65.9%) (100%) (63.2%) AGEL AESL APSE
Slide 8: Adani Portfolio: Decades long track record of industry best growth with national footprint
Adani Portfolio: Decades long track record of industry best growth with national footprint Secular growth with world leading efficiency National footprint with deep coverage Growth 3x 6 Growth 4x 6 EBITDA 70% 1,2 EBITDA 92% 1,4 AEL APSEZ Growth 3x 6 Growth 1.4x 6 AGEL ATGL Adani’s Core Infra. Platfo
Slide 9: Adani Portfolio: Repeatable, Robust & Proven Transformative Model of Investment
Adani Portfolio: Repeatable, Robust & Proven Transformative Model of Investment Phase Development Operations Post Operations Center of Excellence Project Management & Assurance Group (AIIL) AIMSL1 Policy -Strategy - Risk Origination Site Development Construction Operation Capital Mgmt Activity • Ana
Slide 10: Adani & TotalEnergies Renewable Partnership
Adani & TotalEnergies Renewable Partnership Adani and TotalEnergies have a long-term partnership and commitment to expanding the renewable footprint through AGEL – One of the largest energy players in the world with presence across 130 countries & – Amongst Largest infrastructure and real asset plat
Slide 11: Adani Green Energy Limited (AGEL) – Overview
02 Adani Green Energy Limited (AGEL) – Overview Photo: AGEL’s Solar plant at Anjar, Gujarat
Slide 12: AGEL: One of the Largest pureplay renewable companies
AGEL: One of the Largest pureplay renewable companies Secure Sites & Connectivity Resource Assessment Construction Readiness Development & Geotechnical studies ~200,000 acres ~40 GW potential & Special studies (AIIL) Construction Resource rich sites in strategic locations 85+ Wind data locations eva
Slide 13: AGEL – India's Largest Renewable Player and World's 2nd Largest Solar PV Developer
AGEL – India’s Largest Renewable Player and World’s 2nd Largest Solar PV Developer 1 Adani Family GQG QIA LIC Partners 56.3% 7.1% 3 2.7% 1.4% 19.7% Other Public 12.8% Shareholders Locked-in portfolio: 20,844 MW 50% 50% AGEL - TotalEnergies 50:50 JV AGEL (100% Owned) AGE23L ARE9L Total – 1,050 MW Ope
Slide 14: RG 1 Overview
03 RG 1 Overview Photo: AGEL’s Solar-Wind Hybrid plants at Jaisalmer, Rajasthan
Slide 15: RG1: Issuance Structure
RG1: Issuance Structure US$ 409 mm 18-year USD Notes Offshore USD Bonds USD Notes On shore INR Loan 50% 50% – Ring fenced group of operating solar assets with no greenfield development Adani Green Energy Twenty- risk Three Limited (AGE23L) Ring Fenced Sponsor 100% 100% 100% Issuers – Restricted Grou
Slide 16: RG1: Diversified Pool of Operating Solar Assets
RG1: Diversified Pool of Operating Solar Assets Geographical-Mix Counterparty Mix1 Punjab: 10.8% Uttar Pradesh: 10.8% Punjab -100 Rajasthan: 2.2% Jhansi UP I - 50 Rajasthan - 20 Mahoba UP II - 50 43% Chattisgarh : 10.8% 57% Chhattisgarh – 100 Maharashtra: 2.2% Maharashtra Kilaj - 20 Telangana: 10.8%
Slide 17: RG1: Robust operational and financial performance
RG1: Robust operational and financial performance Operational Performance Financial Performance Amount in USD Mn 23.42% 23.23% 23.26% 125 129 119 FY21 FY22 FY23 FY21 FY22 FY23 Adjusted EBITDA CUF Achieved Improving receivable position Receivable 83 95 97 69 days 10% 17% 1% 1% 90% 83% 99% 99% Not Due
Slide 18: RG1: Green Bond – Second Party Opinion
RG1: Green Bond – Second Party Opinion Use of Proceeds Excellent Framework Type Green ✓ Sustainable Fitch deems the proposed projects to be environmentally positive and to contribute to climate change mitigation Date Assigned [21 February 2024] ✓ Use of proceeds is aligned with the renewable energy
Slide 19: Operating in a Stable and Evolved Regulatory Framework
Operating in a Stable and Evolved Regulatory Framework Ministry of Power Empowered CEA Tariff Determination Methodology (MOP) Committee • Renewable power is power of choice for DISCOMs - ranks among cheapest Participants/Statutory bodies under Electricity Act, 2003 Section 63 (Competitive bidding) s
Slide 20: Robust Operational Performance led by Adani ENOC
Robust Operational Performance led by Adani ENOC Adani ENOC (Energy Network Operation Centre) (AIMSL) • Real time monitoring of operating assets across 12 states through • Centralization of overall management of all Adani sites from a single ENOC at Ahmedabad location • Data Analytics driven decisio
Slide 21: RG 1 – Proposed Credit Structure
04 RG 1 – Proposed Credit Structure
Slide 22: Covenanted Cashflow Waterfall
RG1: Covenanted Cashflow Waterfall Structure Robust project finance security and covenant package Summary cashflow waterfall 1 • Bankruptcy remote structure • 100% amortizing debt over PPA term with tail period of ~1 years Taxes and operating expenses Standard Project 1 • Cashflow waterfall mechanis
Slide 23: Senior Debt Sizing Covenant Linked to EBITDA Performance Over Project Life
RG1: Senior Debt Sizing Covenant Linked to EBITDA Performance Over Project Life Senior debt sizing protections Illustration – Senior debt sizing covenant Indicative illustration of PLCR EBITDA Forecast 100 96 92 (US$ mn) Project Life Cover Ratio >=1.6x PLCR 1.60x 1.60x 1.60x US$2.5mm 1 2 62.5 Mandat
Slide 24: Graded DSCR and FFO Covenants Provide Cash Lock-ups
RG1: Graded DSCR and FFO Covenants Provide Cash Lock-ups Distributions linked to graded debt service coverage ratio DSCR levels & lock-ups − 100% distribution permitted in case DSCR is greater than 1.55x >1.55x: No restriction on Distribution − Graded DSCR helps maintain adequate cash flows in case
Slide 25: Senior Debt Tenor Linked To PPA Life
RG1: Senior Debt Tenor Linked To PPA Life RG1 Aggregate Yearly Debt repayment profile Counterparty ~57% Sovereign Wt. Avg Tariff INR 4.80/kWh 3 8.20% 9.08% 9.08% 9.08% 8.56% 10.12% 10.63% 10.63% 5.02% 6.94% 3.09% 3.45% MWac2 930 MW 0.69% 0.39% 0.75% 1.33% 1.20% 1.75% Year 1 Year 2 Year 3 Year 4 Year
Slide 26: Covenants and Structure Providing Protection against Key Business Risks
RG1: Covenants and Structure Providing Protection against Key Business Risks Key Risk Inbuilt Strength RG level Structural Protection – Detailed resource assessment during development stage – Graded distribution linked to DSCR Resource Risk – Studies by reputed consultants – PLCR based debt sizing b
Slide 27: Enhanced Information Covenant
RG1: Enhanced Information Covenant Basic Financial and Business Information Aggregated Financial statements prepared in • Semi Annually Unaudited Within 90 accordance with the Ind AS which consist of: Compliance Along with days from semi-annual period Financial • Financial Position Certificate State
Slide 28: Rating Commentary
RG1: Rating Commentary Ratings BBB- (EXP) (Stable) Ba1 (Stable) • The credit assessment of restricted group is supported by its • Ba1 rating on the USD notes reflects the credit quality of RG- long-term fixed price power purchase agreements (PPAs) for 1, which in turn is supported by its predictable
Slide 29: A Compelling Investment Case
RG1: A Compelling Investment Case High Asset • Project execution with equipment sourced from Bloomberg tier 1 suppliers Quality • Projects design is based on highest global standards • Continuous Repowering to arrest the annual degradation profile of asset Robust • High Weighted Average Plant Availa
Slide 30: Thank You
Thank You
Slide 31: Annexures: RG 1 Operational & Financial Performance
Annexures RG 1: Operational & Financial Performance
Slide 32: RG1: 100% Operating Portfolio
RG1: 100% Operating Portfolio Sl. Capacity Tariff No. Name of Issuer Project Name Location Off-taker (INR / kWh) COD1 (MWac) 1 H Narsipura Karnataka BESCOM 20 4.79 13-Oct-17 2 K R Pet Karnataka BESCOM 20 4.36 22-Dec-17 3 Gubbi Karnataka BESCOM 20 4.36 9-Mar-18 4 Tipatturu Karnataka BESCOM 20 4.36 27
Slide 33: RG1: Asset-wise Operational Performance
RG1: Asset-wise Operational Performance Capacity Utilization Factor (“CUF”) Plant Availability Grid Availability No Issuer Project Name MWac MWdc For the Fiscal Year Ended March 31, 2021 2022 2023 2021 2022 2023 2021 2022 2023 1 H Narsipura 20 25.0 22.33% 21.98% 22.1% 99.79% 99.86% 99.8% 99.32% 99.5
Slide 34: RG1: Financial Summary
RG1: Financial Summary Profit and Loss Summary As on March 31, 2022 As on March 31, 2023 As on December 31, 2023 In INR Cr In USD Mn In INR Cr In USD Mn In INR Cr In USD Mn Total Income 1,048 126 1,097 132 885 106 Less: Total Expenses 1,040 125 1,040 125 749 90 PBT Before Exp Item (8) (1) 57 7 136 1
Slide 35: Appendix: Historical Compliance Certificates
Appendix Historical Compliance Certificates
Slide 36: AGEL RG's: Published Compliance Certificates
AGEL RG’s : Published Compliance Certificates AGEL RG 1 has published 9 Compliance Certificates Sr no. Period Compliance Certificates 1 Sep-19 Compliance report 2 Mar-20 Compliance report 3 Sep-20 Compliance report 4 Mar-21 Compliance report 5 Sep-21 Compliance report 6 Mar-22 Compliance report 7 Se
Slide 37: Appendix: AGEL ESG Framework & Commitments
Appendix Adani Green Energy Limited (AGEL): ESG Framework & Commitments
Slide 38: AGEL: Assurance Backed ESG Framework
AGEL: Assurance Backed ESG Framework Guiding principles India Business Green IFC E&S UN Global UN Sustainable SBTi & Biodiversity Bond Performance Compact Development Goals Initiative (IBBI) Principles Standards Policies Guiding principles Disclosure Standards TCFD TNFD GRI Standards CDP disclosure
Slide 39: Substantial Avoidance of CO2 Emissions & Progress towards other key ESG targets
Substantial Avoidance of CO2 Emissions & Progress towards other key ESG targets CO2 Emissions avoided (mn ton) Key ESG Targets FY25 Indicator Status: H1 FY24 Target 80.0 Ranking in ESG benchmarking of electric utility Top 10 in RE sector Top 10 sector in the world Sustainalytics Water neutral operat
Slide 40: AGEL: ESG Ratings, Awards and Recognition
AGEL: ESG Ratings, Awards and Recognition ESG Commitments ESG Ratings AGEL’s Rating CSRHub (Consensus ESG Rating) Ranking of 96 percentile, with consistent ranking above Alternative Energy industry average ESG Risk Rating of ‘Low Risk’ with a score of 14.4, significantly better than global Utilities
Slide 41: AGEL: LPS Rule introduced in 2022
AGEL: LPS Rule introduced in 2022 • The MoP (Ministry of Power), on June 3, 2022, notified the LPS Rules. The LPS (“Late Payment Surcharge”) Rules provide a mechanism for settlement of outstanding dues of generating companies, inter-State transmission licensees and electricity trading licensees. • U
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