Adani Group Eyes $1.8 Billion via India Bond Sales

1 Aug 2023 , 10:19 AM

Billionaire Gautam Adani's conglomerate plans to raise Rs 150 billion ($1.8 billion) from India's bond market this financial year, aiming to rebuild investor confidence after facing damaging allegations by a short seller earlier in the year.

The bonds are likely to be issued in small lots of Rs 5 billion to Rs 10 billion, consisting of listed and unlisted bonds, to meet capital expenditure requirements.

Adani Ports and Special Economic Zone Ltd., Adani Electricity Mumbai Ltd., Mumbai International Airport Ltd., Navi Mumbai International Airport Ltd., and Adani Enterprises Ltd. are among the group's firms that may issue the bonds first.

As per the information, the plans are expected to gain momentum in the next two months, and the final amount raised could be even higher than the initial target.

However, the discussions are still ongoing, and no final decisions have been made yet. An Adani spokesperson has not responded to requests for comments.

The move comes after Hindenburg Research's January report alleged corporate malfeasance, leading to a decline in the group's stocks and bonds. Adani Enterprises recently raised Rs 12.5 billion through an Indian bond sale to address investor concerns.

Additionally, Adani Group is reportedly in talks with Barclays Plc, Deutsche Bank AG, and Standard Chartered Plc to borrow between $600 million and $750 million to refinance debt taken for the acquisition of Ambuja Cements Ltd.

Adani New Industries Ltd. has already raised $394 million through a trade finance facility from Barclays and Deutsche Bank for a solar module project.

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