Since February, the Adani Group has been considering offering privately placed bonds for at least three of its group companies
Gautam Adani-led Adani Group executives have reportedly met US investors, including from BlackRock Inc., Blackstone Inc. and Pacific Investment Management Co. The meeting reportedly was conducted as a part of Adani’s plans to market privately placed bonds for some of the companies in the group.
As per a Bloomberg report, the Adani Group is planning to raise up to $1 billion in two tranches this year through this route. These meetings were a part of a global roadshow that has now reached several big cities like New York, Boston, San Francisco, Los Angeles etc. The show comes ahead as the Gautam Adani-led conglomerate tries to reassure investors that its finances are under control.
The report adds that since February, the Adani Group has been considering offering privately placed bonds for at least three of its group companies. However, since nothing has been officially confirmed, the documentation work is expected to begin in April and the first trance may be launched in September, as per the publication.
In addition to this, the size of the first trance could reportedly be about $450 million and the privately placed debt papers would be long-term tenors in the range of 10-20 years. As far as the coupon rate goes, the Adani Group may reportedly set this around 8 per cent.
The Hindenburg Research report alleging fraud and stock manipulation by the Adani Group has created a mountain of trouble for the conglomerate. As per media reports, close to $150 billion in combined market value was lost by the entity.