Adani Group's Green Energy Arm Eyes $409 Million Bond Offering

Adani Group's Green Energy division announces plans to raise $409 million through U.S. dollar-denominated bonds with an 18-year tenure
Adani Group Chairman Gautam Adani
Adani Group Chairman Gautam Adani

The Adani Group announced that its Green Energy arm would raise $409 million through U.S. dollar-denominated bonds with an 18-year tenure, as outlined in a regulatory filing.

The Notes are expected to be rated BBB- by Fitch. The selection of eligible green projects for refinancing with the proceeds adheres to the Issuers’ Green Finance Framework of February 2024.

An independent second-party opinion on the Framework was also obtained from Sustainable Fitch.

On Tuesday, the shares of Adani Green Energy Ltd. were trading at Rs 1,975 price level, up by 4 points or 0.23 per cent on NSE.

"The issuers have appointed Barclays Bank PLC, DBS Bank Ltd., Deutsche Bank AG, Singapore Branch, Emirates NBD Bank PJSC, First Abu Dhabi Bank PJSC, ING Bank N.V., Singapore Branch, Intesa Sanpaolo S.p.A., London Branch, MUFG Securities Asia Limited Singapore Branch, SMBC Nikko Securities (Hong Kong) Limited, Societe Generale and Standard Chartered Bank as Joint Bookrunners to arrange a series of fixed income investor meetings in Asia, the Middle East, Europe and the United States commencing on February 28, 2024," the exchange filing stated.

Following a report by Hindenburg Research last year, Adani group companies witnessed a stock and overseas listed bond sell-off, prompting them to withdraw from the foreign currency bond market and repurchase $315 million of listed overseas debt securities, as per a report by Reuters. However, the majority of the group's foreign bonds have regained value since then, providing the company confidence to consider issuing new dollar bonds.

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