Adani Green Energy Limited · NSE:ADANIGREEN
Adani Green Energy — Debt Investor Presentation (September 2019)
29 slides from Adani Green Energy's debt investor presentation, September 2019
Slide 1: Adani Green Energy Limited – Restricted Group II – RG 2
September 2019 Adani Green Energy Limited Restricted Group II – RG 2 STRICTLY CONFIDENTIAL
Slide 2: Confidentiality and disclaimer
Confidentiality and disclaimer The securities described in this presentation (the ‘Notes’) are being issued by three Co-issuers (as defined herein). The Co-issuers are wholly owned subsidiaries of Adani Green Energy Limited (“AGEL”) and together form the restricted group (the “Restricted Group”). AG
Slide 3: Summary terms of the notes
Summary terms of the notes 3 subsidiaries of Adani Green Energy Limited (“AGEL”) issuing green bonds under a single ISIN and CUSIP • Adani Renewable Energy (RJ) Limited (“ARERJL”) Co-Issuers • Wardha Solar (Maharashtra) Private Limited (“WSMPL”) • Kodangal Solar Parks Private Limited (“KSPPL”) Expec
Slide 4: Contents
Contents 1. Adani Group 2. Restricted Group 2 (“RG 2”) 3. Credit Highlights A. Appendix 3
Slide 5: Adani Group
1 Adani Group STRICTLY CONFIDENTIAL
Slide 6: Adani – Leading infrastructure and utility portfolio
Adani – Leading infrastructure and utility portfolio Transport & Logistics Portfolio Utility & Power Portfolio 62.3% 100% 100% 75% 75% 75% 75% Adani Adani Adani Green Adani Gas APSEZ AAPT SRPCL Transmission Power (AGEL) (AGL) (ATL) (APL) Port & Port Rail 75% Transmission & IPP Renewables Gas Distrib
Slide 7: Adani – Repeatable, robust and proven business model
Adani – Repeatable, robust and proven business model Phase Development Operations Post operations Origination Site development Construction O&M and Capital technology management • Return based • Resource assessment • Template based • RONC based analytics • Reduction of cost of disciplined bidding de
Slide 8: … and applied consistently to drive value
… and applied consistently to drive value Key business model attributes Successfully applied across Infrastructure and utility platform Development at scale and within time and budget India’s Largest Longest Private HVDC 648 MW Ultra Mega Largest Single Location Commercial Port Line in Asia Solar Po
Slide 9: Adani Group model replicated in AGEL
Adani Group model replicated in AGEL Generation capacity Diversified portfolio1 Project capex / EBITDA Execution strength and 5,290MW 11states 6.0x pan-India presence (2,320 MW Operational / 50% solar; 32% wind; 19% hybrid 2,970 MW under construction) Off-take profile PPA characteristics Generation
Slide 10: Restricted Group (“RG 2”)
2 Restricted Group (“RG 2”) STRICTLY CONFIDENTIAL
Slide 11: Ring fenced obligor group with documented pool protection features
RG2 – Ring fenced obligor group with documented pool protection features AGEL Prayatna Parampujya Adani Renewable Energy Kodangal Solar Parks Private Wardha Solar (Maharashtra) Adani Green Developers Solar Energy Pvt Other Subsidiaries (RJ) Limited Limited Private Limited Energy (UP) Ltd Pvt Ltd Ltd
Slide 12: Operating in a robust and tested regulatory framework over 20 years
RG2 – Operating in a robust and tested regulatory framework over 20 years Ministry of Power Empowered CEA Tariff Determination Methodology (MOP) Committee Participants/Statutory bodies under Electricity Act, 2003 Section 62 (RoA) Section 63 (TBCB) To regulate and determine/adopt the tariff and to gr
Slide 13: PPA Tariff leads to maximum dispatch and seamless documented protections
RG2 – PPA Tariff leads to maximum dispatch and seamless documented protections Renewable power is at grid parity in India1 AGEL RG2 tariffs in line with APPC tariffs INR / unit 4.4 CERC National APPC: 3.60 3.8 India 3.3 2.9 2.6 3.0 2.5 2.7 2.7 3.60 Jun-18 Jul-18 Aug-18 Dec-18 Feb-19 May-19 RG2 - Mah
Slide 14: Demonstrating a conservative leverage profile
RG2 – Demonstrating a conservative leverage profile Financial snapshot Total revenue ($mm) EBITDA ($mm)1 Revenue VGF EBITDA VGF 84.1 76.8 77.2 3.6 69.3 17.9 17.9 3.6 66.2 73.2 65.7 59.3 2020E 2021E 2020E 2021E Pro-forma capitalization Current Adj. Pro Forma (USD mn) (USD mn) (USD mn) Existing Extern
Slide 15: Investor Protections and Credit Highlights
3 Investor Protections and Credit Highlights STRICTLY CONFIDENTIAL
Slide 16: 100% operating portfolio
RG2 – 100% operating portfolio Tariff under Capacity PPA (INR / Actual VGF1 FY 21E EBITDA Name of SPV Project site name Location Off-taker (MWAC) unit) COD (USD mn) (USD mn) Madhuvanahally Karnataka SECI 100 4.43 Mar-18 Rajeshwar Karnataka SECI 50 4.43 Mar-18 Maskal Karnataka SECI 50 4.43 Mar-18 WSM
Slide 17: Robust project finance security and covenant package
RG2 – Robust project finance security and covenant package • Bankruptcy remote RG 2 Summary cashflow waterfall1 • 100% amortizing debt over PPA term with tail period of 2 years Standard project • Cashflow waterfall mechanism 1 Taxes and operating expenses finance features • 6 month Debt Service Rese
Slide 18: Senior debt sizing covenant linked to EBITDA performance over project life
RG2 – Senior debt sizing covenant linked to EBITDA performance over project life Senior debt sizing protections Illustration – Senior debt sizing covenant Indicative illustration of PLCR Project Life Cover EBITDA forecast 100 96 92 Ratio >=1.6x ($mn) ÷ ÷ ÷ 1 2 PLCR 1.6x 1.6x 1.6x At least 65% of EBI
Slide 19: Covenant to protect credit quality of EBITDA for project life
RG2 – Covenant to protect credit quality of EBITDA for project life Key Risks Structural Protections 26% Sub- • Sovereign equivalent off-taker to contribute at least 65% of the total Counter party Sovereign EBITDA Risk A • 100% coverage of bond principal and interest from cashflows of sovereign 74%
Slide 20: Senior debt tenor linked to PPA life
RG2 – Senior debt tenor linked to PPA life 24 years PPA period remaining for the RG2 asset pool WSMPL KSPPL ARERJL Completed Assets with Minimal Off-taker SECI BESCOM MSEDCL Ongoing Maintenance PPA Period 25 years 25 years 25 years PPA end year FY 20431 FY 2043 FY 2045 COD Mar-18 Jan-18 Aug-19 Off-t
Slide 21: Graded DSCR and FFO covenants provide cash lock-ups
RG2 – Graded DSCR and FFO covenants provide cash lock-ups Distributions linked to graded debt service coverage ratio DSCR levels 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 of volatil
Slide 22: Mandatory capex reserve to ensure asset quality & performance
RG2 – Mandatory capex reserve to ensure asset quality & performance RONC (Remote Operations Nerve Center) 6 months forward Capex Reserve Account stipulated to maintain EBITDA profile • Centralization of overall management of all Adani sites from a single location Data Analytics driven decision m
Slide 23: Detailed & enhanced information covenant
RG2 – Detailed & enhanced information covenant Basic financial and business information Issuer to deliver: o Unaudited (semi-annual period) /Audited (annually) aggregated financial statements prepared in accordance with the Accounting principle which consist of: Financial Position Financial and
Slide 24: Ratings outcome: only private sector renewable IG rating in India
Ratings outcome: Features resulted in only private sector renewable IG rating in India Expected Ratings Baa3 (Exp) BBB- (Exp) • Strong off-taker Credit profile versus peers, Long term • Experience Contractors, Proven Technology contracts provide stable cash flows • Protective structural features wit
Slide 25: A compelling investment opportunity
RG2 – A compelling investment opportunity Highest rating of any private Indian renewable The issue has been rated Baa3 by Moody’s and BBB- by Fitch (Expected) offering 100% long term contracted capacity 65% of capacity and ~74% of EBITDA from sovereign equivalent off-takers Quality asset Sta
Slide 26: Thank you
Thank you STRICTLY CONFIDENTIAL
Slide 27: Appendix
A Appendix STRICTLY CONFIDENTIAL
Slide 28: RG 2 – Financial Summary
RG 2 – Financial Summary FY2017-18 FY2018-19 YTD2019-20 YTD2019-20 12 months (INR Mn) 12 months (INR Mn) 3 Months (INR Mn) 3 Months (USD Mn) Revenue 0.6 3554.2 957.7 13.9 VGF - - - - Total Income 0.6 3554.2 957.7 13.9 Less: O&M 6.2 766.9 86.2 1.3 EBIDTA (5.6) 2787.3 871.5 12.6 Add: Other Non-Operati
Slide 29: Renewables − Attractive industry outlook
Renewables − Attractive industry outlook Low per capita power consumption Untapped solar and wind resources Low share in generation mix1 Per capita power consumption (KWh) Renewables Potential Installed capacity in GW (Apr-2019) 22% US: ~11.3x India 12,984 749.0 Nuclear 28.2 GW expected to China: ~3
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