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 because they are not authorized to speak to the media.
“Companies could enter the market before the end of this month, once the pulse of investors in the upcoming roadshows is determined,” said one of the bankers.
Adani Green Energy did not immediately respond to a Reuters request for comment.
He Adani Group returned to the dollar bond market in early 2024, about a year after short seller Hindenburg Research accused him in January 2023 of misusing offshore tax havens and stock manipulation that caused a $150 billion drop. dollars in actions of the group companies.
The group, which has repeatedly denied the allegations, has seen its companies recover much of the losses in stocks and bonds since then. In March, Adani Green Energy raised $409 million through 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 the sale of dollar bonds between different companies, according to a
Bloomberg Report
in September.
The last 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 subsidiaries of Adani Green, through a structured bond deal.
Each unit will guarantee the obligations of the others, while the covenants attached to the bond issue will be set in aggregate, 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 bonds 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 Adani’s subsidiaries mentioned 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 the London Indian branch, along with a few others, as joint bookmakers, the two merchant bankers said.
Top managers had not yet responded to Reuters requests for comment.
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