Adani Green to Secure $409 Million for Long-Term Growth via Dollar Bonds

27 Feb 2024 , 03:44 AM

In a regulatory filing on Tuesday, Adani Green Energy, stated that it is seeking to finance $409 Million through bonds denominated in US dollars and having an 18-year door-to-door tenor.

Adani Green Energy, the first entity in the Adani group to return to the foreign bond market in a year, was reportedly trying to raise about $500 Million by selling dollar notes in March, according to a previous report from Reuters.

According to the firm, the weighted average life of the bonds may be approximately 12.7 years, and the offering would be contingent upon market circumstances.

The announcement also stated that the $500 Million in 6.25% senior secured notes due in 2024 that were issued on June 10, 2019, will be refinanced with the proceeds from the offering.

In order to organise a series of fixed income investor meetings in Asia, the Middle East, Europe, and the United States beginning on February 28, the issuers have named Barclays, DBS Bank, Deutsche Bank, Emirates NBD Bank, First Abu Dhabi Bank, ING Bank, Intesa Sanpaolo, MUFG Securities Asia, SMBC Nikko Securities, Societe Generale, and Standard Chartered Bank as joint bookrunners.

The proposed 18-year fully amortising senior secured notes due in 2042 by Adani Green Energy Limited Restricted Group 1 (AGEL RG1) have been granted an anticipated rating of ‘BBB-(EXP)’ by Fitch Ratings, with a stable outlook, the rating agency said in a separate release.

The Adani Group Companies’ equities and international listed bonds were sold off in January of last year due to a report by U.S. short seller Hindenburg Research. This forced the companies to withdraw from the foreign currency bond market and repurchase $315 Million in listed overseas debt securities.

The company felt comfortable enough to consider a new dollar bond offering after that, as the majority of the group’s foreign bonds have since returned to levels above where they were trading prior to the Hindenburg report.

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