The Adani Group returned to the dollar bond market in early 2024, about a year after being accused by short seller Hindenburg Research in January 2023 | (Photo: Shutterstock)
India’s Adani Green Energy canceled its plan to raise funds through US dollar-denominated bonds after investors submitted bids with higher yields than the company was willing to pay, two bankers directly involved in the deal told Reuters. late Tuesday.
Initial guidance was to offer a 7 percent yield for the 20-year maturity, according to one of the bankers.
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“Some investors demanded a higher return, which the company was not comfortable with and that is why they decided to cancel the agreement,” said the banker.
Adani Green Energy did not respond to an email sent by Reuters outside normal business hours in India.
Investors were seeking higher yields due to increased market uncertainty related to the US presidential election and domestic political risks that could affect bond issuers’ ability to pay, the second banker said.
The bankers declined to be identified because they were not authorized to speak to the media.
The Adani Group returned to the dollar bond market in early 2024, about a year after short seller Hindenburg Research accused it in January 2023 of misusing offshore tax havens and stock manipulation that caused a 150 drop. billion dollars in group shares. companies.
In March, Adani Green Energy raised $409 million through 18-year bonds after receiving bids of nearly $3 billion.
The latest bond issuance was led by Adani Green units (Adani Hybrid Energy Jaisalmer One, Adani Hybrid Energy Jaisalmer Two, Adani Hybrid Energy Jaisalmer Four and Adani Solar Energy Jaisalmer One) through a structured bond deal.
Emails sent to the four subsidiaries outside of normal business hours were not immediately returned.
Each unit was supposed to guarantee the obligations of the others, while the covenants attached to the bond issue will be established on an aggregate basis, according to a note from Fitch Ratings.
Covenants are terms and conditions attached to the bond, typically financial metrics that the company must maintain to retain the loan at the agreed upon interest rate.
The proceeds would have been used to refinance the subsidiaries’ existing dollar-denominated construction loans, Fitch Ratings said.
First published: October 16, 2024 | 8:51 a.m. IS
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