Adani Group plans to finish the sales by the end of February 2025 and use the funds to refinance project debt
Billionaire Gautam Adani-led Adani Group is holding discussions with nearly 10 international banks to raise funds worth $1.5 billion, according to a Bloomberg report. The company is planning to issue dollar bonds to secure the funds. A dollar bond is a US dollar-denominated bond issued outside of the US by a foreign company.
The company will issue the bonds under its renewable energy and power transmission units, Adani Green Energy and Adani Energy Solutions. The company will issue the same through special-purpose vehicles (SPV). SPV is a subsidiary created by a parent company to isolate financial risk. Moreover, the company will sell green or sustainability-linked instruments.
The Adani conglomerate reportedly plans to finish the sales by the end of February 2025 and use the funds to refinance debt.
The Adani group had hit pause on the dollar bond market after it got caught up in the American short-seller Hindenburg Research's accusations. The conglomerate returned to the bond market in March this year and has since then been trying to regain the trust of global investors by reducing debt.
In January 2023, Hindenburg released a report titled “The largest con in corporate history.” The short seller accused the Adani group of stock manipulation and financial misconduct.
“Today we reveal the findings of our 2-year investigation, presenting evidence that the Rs 17.8 trillion Indian conglomerate Adani Group has engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades,” said the short-seller in the report.
Recently, Hindenburg has released another report; this time it is the Securities and Exchange Board of India chairperson, Madhabi Puri Buch, on its radar. In a report published by the short seller on August 10, it accused SEBI chief and her husband, Dhaval Buch, in Adani Group’s offshore funds scandal.
“...the current SEBI chairperson and her husband, Dhaval Buch, had hidden stakes in the exact same obscure offshore Bermuda and Mauritius funds, found in the same complex nested structure, used by Vinod Adani,” said the report.