 "Adani Enterprises, Adani group")
Each unit will guarantee the obligations of the others, while covenants attached to the bond issue will be set on an aggregate basis, according to a note by Fitch Ratings. Image: Bloomberg
Four subsidiaries of India’s Adani Green Energy plan to raise up to $1 billion by issuing U.S. dollar-denominated bonds, two merchant bankers involved in the deal said on Tuesday.
The companies will issue bonds with a maturity of 20 years in one or more tranches starting this month, the bankers said, speaking on condition of anonymity as they are not authorised to speak to the media.
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“The companies may tap the market before the end of this month, once it judges the pulse of investors in upcoming roadshows,” one of the bankers said.
Adani Green Energy did not immediately respond to a Reuters request for comment.
The Adani Group returned to the dollar bond market earlier in 2024, about a year after it was accused by short-seller Hindenburg Research in January 2023 of improper use of offshore tax havens and stock manipulation that sparked a $150 billion rout in shares of the group’s companies.
The group, which has repeatedly denied the allegations, has seen its firms recover much of the losses in shares and bonds since then.
In March, Adani Green Energy raised $409 million via 18-year bonds after receiving bids of nearly $3 billion.
The Adani Group is also in talks to raise at least $1.5 billion through dollar bond sales across different companies, according to a Bloomberg report in September.
The latest round of fundraising will be led by Adani Hybrid Energy Jaisalmer One, Adani Hybrid Energy Jaisalmer Two, Adani Hybrid Energy Jaisalmer Four and Adani Solar Energy Jaisalmer One – all Adani Green subsidiaries – through a structured bond deal.
Each unit will guarantee the obligations of the others, while covenants attached to the bond issue will be set on an aggregate basis, according to a note by Fitch Ratings.
Covenants are terms and conditions attached to the bond, typically financial metrics the company must maintain to retain the borrowing at the agreed rate of interest.
The notes are rated BBB- (EXP) by Fitch and Baa3 by Moody’s.
The proceeds would be used to refinance the subsidiaries’ existing dollar-denominated construction loans, Fitch said.
None of the Adani subsidiaries named above were immediately available for comment.
The issuers have appointed DBS Bank, Emirates NBD Bank, First Abu Dhabi Bank, Mizuho Securities (Singapore), MUFG Securities Asia’s Singapore branch, SMBC Nikko Securities (Hong Kong), Societe Generale and State Bank of India’s London branch, along with some others, as joint bookrunners, the two merchant bankers said.
The lead managers were yet to respond to Reuters’ requests for comment.
First Published: Oct 08 2024 | 9:13 PM IST
