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.
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.
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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.
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