Adani Green Subsidiaries to Raise $1 Billion Through Dollar Bonds

Adani Green Subsidiaries to Raise $1 Billion Through Dollar Bonds

Four subsidiaries of Adani Green Energy are set to raise up to $1 billion by issuing U.S. dollar-denominated bonds. This fundraising move is planned to be executed in one or more tranches, with bond issuances having a 20-year maturity. According to merchant bankers involved in the deal, the companies are expected to tap the market by the end of this month, gauging investor sentiment during upcoming roadshows. Adani Green Energy has yet to comment on the matter.

This marks a significant return to the dollar bond market for the Adani Group after its turbulent 2023, when it faced accusations from short-seller Hindenburg Research regarding improper use of offshore tax havens and stock manipulation. These allegations led to a $150 billion decline in the group’s market value. Despite the controversy, the group has since seen a recovery in its share prices and bonds.

The latest bond issuance will be led by Adani Hybrid Energy Jaisalmer One, Adani Hybrid Energy Jaisalmer Two, Adani Hybrid Energy Jaisalmer Four, and Adani Solar Energy Jaisalmer One. The structured bond deal ensures that each subsidiary guarantees the obligations of the others. Terms of the bond, known as covenants, will be set on an aggregate basis, according to Fitch Ratings.

The bonds have received ratings of BBB- (EXP) from Fitch and Baa3 from Moody’s. The raised funds will be used to refinance the subsidiaries' existing dollar-denominated construction loans. The issuer has appointed several prominent banks, including DBS Bank, Emirates NBD Bank, First Abu Dhabi Bank, Mizuho Securities, MUFG Securities, SMBC Nikko Securities, Societe Generale, and State Bank of India’s London branch, to act as joint bookrunners for the bond issuance.