Adani Green Subsidiaries to Raise Up to $1 Billion Through Dollar Bonds The bonds will have a 20-year maturity and will be issued in one or more tranches, with the process set to begin this month
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In a significant financial move, four subsidiaries of Adani Green Energy are planning to raise up to $1 billion by issuing U.S. dollar-denominated bonds. The subsidiaries involved in the bond issuance include Adani Hybrid Energy Jaisalmer One, Adani Hybrid Energy Jaisalmer Two, Adani Hybrid Energy Jaisalmer Four, and Adani Solar Energy Jaisalmer One. These entities will issue the bonds through a structured deal, where each subsidiary guarantees the obligations of the others. This approach aims to strengthen investor confidence by spreading the risk across the participating companies. The terms and conditions, or covenants, attached to the bond issuance will be set collectively. According to two merchant bankers involved in the deal, the bonds will have a 20-year maturity and will be issued in one or more tranches, with the process set to begin this month, as reported by Reuters.
The companies are expected to assess investor sentiment during upcoming roadshows and may move forward with the bond sale before the end of October, the bankers disclosed. This latest fundraising effort marks another step by the Adani Group in its return to the international bond market. Earlier in 2024, the group resumed dollar bond issuances following a turbulent period after accusations from short-seller Hindenburg Research in January 2023. The report, which alleged improper use of offshore tax havens and stock manipulation, caused a $150 billion drop in the value of Adani Group shares. The company, however, has consistently denied these allegations, and since then, its firms have recovered much of their losses.
In March of this year, Adani Green Energy successfully raised $409 million through 18-year bonds, which attracted nearly $3 billion in bids. The group has also been in talks to raise at least $1.5 billion through bond sales across multiple companies, according to a report by Bloomberg in September.
The proceeds from this new bond issuance will primarily be used to refinance existing dollar-denominated construction loans taken by the subsidiaries, as noted by Fitch Ratings. The bonds have received preliminary ratings of BBB- (EXP) from Fitch and Baa3 from Moody's, indicating investment-grade quality.
Several financial institutions, including DBS Bank, Emirates NBD Bank, First Abu Dhabi Bank, Mizuho Securities, and Société Générale, have been appointed as joint bookrunners for the bond issuance. This latest bond sale signals the Adani Group's continued efforts to secure international investment and stabilize its financial standing following last year's market turmoil.
