Adani Group representatives informed investors about the sale of a new overseas bond valued at $409 million likely to occur next week, as per a report by Bloomberg. The capital-raising efforts of the Indian conglomerate is facing intense scrutiny following last year's Hindenburg report, which alleged financial misconduct.
Despite repeated denials by company officials, the selloff raised concerns that the group would face massive costs for accessing overseas capital, according to sources cited in the report.
Earlier this week, Adani announced that it had engaged with leading banks for the planned transaction. The USD-denominated debt, issued by Adani Green Energy Ltd. and related entities, will span 18 years and is earmarked for redeeming $500 million in notes due in December.
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The issuers have designated Barclays, DBS Bank, Deutsche Bank, Emirates NBD Bank, First Abu Dhabi Bank, ING Bank, Intesa Sanpaolo, MUFG Securities Asia, SMBC Nikko Securities, Societe Generale, and Standard Chartered Bank as joint bookrunners. They will coordinate a sequence of fixed-income investor meetings across Asia, the Middle East, Europe, and the United States commencing on Feb. 28.
Fitch Ratings has given a projected 'BBB-' rating with a stable outlook to Adani Green Energy's proposed 18-year tenor secured notes due 2042.
"The eligible green projects to be refinanced with the gross proceeds of the Notes were evaluated and selected based on the Issuers’ Green Finance Framework February 2024 (the “Framework”). The Issuers have received an independent second party opinion from Sustainable Fitch on the Framework," the company said in a release.
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