A $1.5 billion green bond issuance that was first offered at 7% has been postponed by Adani Group. The money was supposed to be used to pay back foreign currency loans. As the group looks to regain investor confidence following a major stock meltdown in 2023, the offer might reappear after the state elections in November.
After promoting the deal to investors for hours, billionaire Gautam Adani’s company decided to postpone the sale of 20-year green dollar bonds on Tuesday.
According to a person with knowledge of the situation who wished to remain anonymous, the note was being offered by Adani Green Energy Ltd., the group’s renewable energy division, and the final price guidance was set at 7%. Later on Tuesday, the individual stated that the intended deal will not proceed at this time. Foreign currency loans were to be repaid with the proceeds.
Deal Likely to Return
According to a different source with knowledge of the situation, Adani intends to reintroduce the offer to the market after the US election in November. After regular business hours in India, an Adani representative was not immediately available.
The turnaround occurs as Adani Enterprises Ltd., the conglomerate’s flagship company, looks to sell institutions its shares in order to fund roughly $500 million. After recovering from a Hindenburg Research short-seller report in 2023 that caused Adani business stocks to plummet by more than $150 billion, the media-to-mining business has been focussing on growth prospects.
Executives have since made an effort to regain the trust of investors by reducing debt, moving on with significant projects, and providing fresh information about the conglomerate’s future, including tycoon Adani’s retirement plans. The Indian multinational has refuted the short-seller’s claims on multiple occasions.
According to persons familiar with the situation last month, the Adani Group may sell $1.5 billion worth of bonds by the end of February, mostly through the Adani Green Energy and Adani Energy Solutions Ltd. subsidiaries and special purpose vehicles.
Indian issuers have raised over $10 billion in 2024 so far, and dollar bond sales are at their highest level in three years. A Bloomberg index shows that spreads on such debt from Asian investment-grade debtors are close to all-time lows.