Adani Group Likely To Dive Back Into Bond Markets By September

Adani Group is gearing up to make a comeback in the global bonds market by September this year, with several group companies aiming to raise up to $2 billion (₹16,522 crore).

What Happened? Several group companies, including Adani Green Energy, Adani Transmission, and Adani Ports and SEZ, aim to borrow through sustainability-linked and green bonds, the Economic Times reported, citing sources.

The move follows the group’s recent success with the $300-million (₹2,477 crore) foreign currency sustainability-linked bonds, issued by Adani Electricity Mumbai Ltd (AEML) in 2021.

See Also: If You Invested ₹10,000 In Adani Power A Month After Hindenburg Report, Here’s How Much You’d Have Today

To adhere to the bond programme’s legal covenants, AEML had set a target to achieve a 30% green energy output in its power purchase mix – a goal it has already surpassed ahead of the designated timeframe. As part of its $2-billion (₹16,522 crore) global medium-term notes program, AEML plans to further increase the green energy component to 60% by 2027.

The Adani Group is currently in discussions with Barclays and Deutsche Bank to potentially secure a mandate for this forthcoming fundraise, sources told the business daily. The bonds are expected to be listed in Singapore, with a strategic focus on attracting long-term investors, including insurance firms and sustainability-oriented investors.

News that Moves

Get Ring The Bell, Benzinga India’s weekly briefing. Designed specifically for investors like you.

You have successfully subscribed.

This shift in fundraising strategy aims to replace project finance loans obtained from various lenders, primarily global banks.

The stocks have however recovered quite a bit from the fall in share prices related to the Hindenburg report. The Gautami Adani-led conglomerate has been trying to build back investor confidence ever sicne. The group just this week announced that it had repaid loans ₹22,000 crore ($2.65 billion).

In its effort to refinance portions of its overseas-listed bonds, the Adani Group reportedly plans to explore private placements to overseas investors through longer-term bonds with maturities of up to 30 years.

Read Next: Auditor Flags Adani Ports Transactions, Hindenburg Report Back In Focus

Posted In: NewsBondsFinancingMarketsAdaniAdani GreenAdani Groupadani ports & sezAdani Transmission