MARCH 20258ADANI GREEN SECURES LONG-TERM FUNDING FOR HYBRID RENEWABLE EXPANSIONINDIA'S MANUFACTURING PMI FALLS TO 56.3, HITTING A 14-MONTH LOWAdani Green Energy Ltd (AGEL), the biggest renewable energy firm in India, revealed on Monday that it has reached another significant milestone in its Capital Management Journey. The firm announced that it has effectively refinanced its initial Construction Facility with a remaining USD 1.06 billion acquired in 2021 to establish India's largest solar-In February, India's manufacturing sector experienced a decline, reaching a 14-month low, as the HSBC India Manufacturing Purchasing Managers' Index (PMI) fell to 56.3 from 57.7 in January. The decrease, influenced by weaker new orders and production expansion, was emphasized in a private sector report published on March 3.TOP STORIESDespite the dip, the PMI remained in expansionary territory. "India recorded a 56.3 manufacturing PMI in February, down slightly from 57.7 during the prior month, but still firmly within expansionary territory," said Pranjul Bhandari, chief India economist at HSBC.The most recent figure also dropped beneath last quarter's average of 56.8. Although export orders increased, demand weakened in comparison to January. Job growth in the sector decelerated, as merely 10 percent of companies indicated increased hiring, while 1 percent cut their workforce.Producers encountered increasing input expenses but managed to transfer them to customers because of strong demand. The production decline occurs even with India's overall economic recovery. GDP growth bounced back to 6.2 percent in the third quarter, rising from a nearly two-year low of 5.6 percent recorded in the prior quarter. The government has updated its annual growth projection to 6.5 percent, an increase from 6.4 percent.However, manufacturing is anticipated to stay weak, as growth is estimated to decrease to 4.3 percent in FY24 from 12.3 percent in the prior fiscal year. The sector's portion of GDP fell to 15.7 percent, lower than its 16 percent average from the last 15 years. wind hybrid renewable cluster in Rajasthan. It further emphasized that the long-term funding acquired to refinance its Construction Facility has a total tenor of 19 years with a fully amortized debt structure reflecting the asset life.Through this achievement, AGEL has effectively finalized its capital management initiative for the underlying asset portfolio, which includes obtaining long-term arrangements that are fully in sync with the cash flow lifecycle of that portfolio. The structure of this program offers substantial advantages by granting extensive access to various capital sources, ensuring considerable amounts with extended timeframes.This strategy not only improves financial stability but also ensures that AGEL can maintain its growth path and produce sustainable value for its stakeholders. Building on a solid history of operational performance, the company further noted that the facility has received an AA/stable rating from three domestic rating agencies. The refinancing facility has been assigned an AA/Stable rating by three local rating agencies--ICRA, India Ratings, and CareEdge Ratings.This achievement marks the conclusion of the capital management initiative for the underlying asset portfolio. This strategic initiative has been demonstrated to be the primary driver of AGEL's continuous growth and is essential for attaining its long-term growth goals.
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