In a move aimed at bolstering its financial position, Adani Green Energy, a prominent player in India’s renewable energy sector, has announced its intention to raise $409 million through U.S. dollar-denominated bonds. The company revealed this plan in a regulatory filing, indicating a door-to-door tenor of 18 years for the bonds.
This decision comes on the heels of an earlier Reuters report suggesting that Adani Green Energy was gearing up to issue dollar bonds amounting to approximately $500 million in March. If successful, this issuance would mark the return of the Adani Group to the overseas bond market after a hiatus of one year.
According to the company, the issue’s size will be contingent on prevailing market conditions, with the weighted average life of the bonds estimated at around 12.7 years. The proceeds from the bond issuance are earmarked for refinancing the existing $500 million worth of 6.25% senior secured notes due in 2024, which were originally issued on June 10, 2019.
To facilitate the bond offering, Adani Green Energy has enlisted the services of several leading financial institutions, including Barclays, DBS Bank, and Deutsche Bank, among others. These institutions will organize a series of fixed income investor meetings across Asia, the Middle East, Europe, and the United States, commencing on February 28.
In a separate development, Fitch Ratings has assigned an expected rating of ‘BBB-(EXP)’ with a stable outlook to Adani Green Energy Limited Restricted Group 1’s proposed 18-year fully amortizing senior secured notes due in 2042.
This move by Adani Green Energy follows a tumultuous period marked by a sell-off in the stocks and overseas listed bonds of Adani group companies, triggered by a report from U.S. short seller Hindenburg Research in January last year. However, since then, most of the group’s foreign bonds have rebounded, providing the company with the confidence to explore fresh opportunities in the foreign currency bond market.
As Adani Green Energy embarks on this fundraising endeavor, it underscores the company’s commitment to sustainable finance and its strategic vision for expanding its renewable energy portfolio.
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