Total SE’s acquisitions of 20 per cent minority interest in AdGreen Energy Ltd (AGEL) from Adani Group for around 2.5 billion dollars is credit positive because it strengthens Total’s position in the low carbon business, according to Moody’s Investors Service.
This includes prior acquisition of a 50 per cent stake in a 2.35 GWac portfolio of operating solar assets owned by AGEL.
“We consider the acquisition credit positive because it strengthens Total’s position in the low carbon business, facilitating its goal to achieve carbon neutrality by 2050,” said Moody’s in its latest credit outlook released on Monday.
“Our assessment also takes into account partial equity funding of the acquisition because in this context Total is issuing hybrid notes, for which we assign a 50 per cent equity credit.”
AGEL is an important participant in India’s renewable market. The company started in 2015 with the world’s largest single-location solar power project located at Kamuthi in Tamil Nadu (648 megawatts).