Adani Group travels the world doing roadshows to attract investors.

28 Feb 2024 , 12:33 PM

Prior to new bond sales, the Adani group has started a series of foreign roadshows for bondholders to increase investor trust in its businesses, according to news reports.

Declaring on Wednesday that it is seeking to issue $409 million through dollar-denominated notes with an 18-year door-to-door tenor, Adani Green Energy Ltd (AGEL) is indicating the group’s return to the global bond markets following the Hindenburg crisis last year. The $500 million, 6.25% senior secured notes that were sold on June 10, 2019, will be refinanced with the proceeds of the transaction. The notes are due in 2024.

According to the aforementioned reports, the roadshows are an attempt to allay investor concerns about the company’s capacity to pay down its debt by means of operational effectiveness, strategic asset monetization plans, and careful financial planning. They also aim to clear up any residual uncertainty resulting from the Hindenburg crisis. 

The source cited by the report stated, ‘The roadshows, led by key executives and financial advisors, aim to address investor concerns by providing clarity on the group’s debt management strategies, liquidity position, and repayment schedules.’

The Adani Group is anticipated to discuss its expansion plans for a number of verticals, such as renewable energy, ports, airports, and infrastructure, during these meetings. The business hopes to take advantage of new chances and establish itself as a major player in the global market given India’s expanding infrastructure needs and the government’s emphasis on projects like the adoption of renewable energy and port-led development, they said. According to a second source who talked to MoneyControl, a banker, ‘the group’s senior management have met investors in London recently and plan to hold similar interactions with investors in continental Europe, the US and Canada, the Middle East and Asia.’

The banker explained that these roadshows, which include presentations and interactive sessions, are purposefully created to involve international stakeholders and offer insights into the group’s operational performance, financial health, and growth potential. The group owns foreign currency debts due in 2024 totaling $1.9 billion. A significant amount of its outstanding maturities have been resolved.

Through regulatory filings, the group has informed investors that it is constructing a liquidity pool of cash and cash equivalents to cover the $750 million in bonds issued by Adani Green’s holding company that were sold in 2019 and are due to mature in September of the following year. In addition, the group promised to pay the $650 million bond tranche of Adani Ports and Special Economic Zones in cash by July; of that amount, $325 million has already been paid this year. Top bond investors in Adani include MetLife, Fidelity, PIMCO, and Blackrock.

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