Adani Green Energy in talks to raise $400 million loan

26 Apr 2024 , 09:52 AM

Adani Green Energy is in discussions with Rabobank, MUFG, SMBC, and DBS for a $400 million loan.

The loan is anticipated to be priced at a secured overnight financing rate (SOFR) plus 250 basis points, with a five-year tenor. Basis points represent hundredths of a percentage point. The funds from the loan will be utilized for capital expenditure, as per sources.

Additionally, Adani Green plans to raise a $1.3 billion bond post the general elections, following the success of its recent dollar note sale. Last month, Adani Green issued a $409 million dollar note, which was oversubscribed seven times, indicating strong investor confidence despite previous controversies. The funds from the dollar note sale were utilized to refinance existing debts.

The company is gearing up to launch a larger bond issuance, building on the positive response from investors. The bond issuance is expected to commence under 144 Reg S after the ongoing elections.

Despite inquiries, Adani Group, Rabobank, SMBC, and MUFG representatives remained silent, while DBS declined to comment. Adani Group’s dollar bond has experienced a resurgence in the past year. The group currently has 15 listed bonds for various projects including ports, renewable energy, distribution, and transmission assets.

Spreads between Adani bonds’ yield to maturity (YTM) and comparable US G-Sec treasury bond yields have narrowed significantly in recent months.

Adani Green Energy operates a portfolio consisting of solar, wind, and wind-solar hybrid capacities, with plans to develop a massive renewable energy project in Gujarat.

Within a year, Adani Green Energy operationalized 2,000 MW cumulative solar capacity. The company has secured projects totaling 21.8 GW and currently operates the largest renewable portfolio in India, spanning 12 states.

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