In last-hour rethink, Adani Group delays major green bond sale

Billionaire Gautam Adani’s conglomerate opted to postpone a sale of 20-year green dollar bonds on Tuesday after marketing the deal to investors a few hours before.

Units of the group’s clean-energy business, Adani Green Energy Ltd., were offering the note, and the final price guidance was set at 7%, according to a person familiar with the matter. However, the proposed deal won’t go ahead at this time. The proceeds of the sale will have been used to repay foreign currency loans.

Another person familiar with the matter said the Adani Group plans to bring the deal back to the market after November’s US election.

Hindenburg and after

The reversal comes as the conglomerate’s flagship firm, Adani Enterprises Ltd., seeks to raise about $50 crore in a share sale to institutions. The media-to-mining group has been refocusing on growth opportunities after rebounding from a short-seller report in 2023 by Hindenburg Research that sparked a more than $150 billion rout in Adani Group stocks.

Since then, executives have attempted to rebuild investor confidence by trimming debt, advancing major projects, and offering new details on the conglomerate’s future, including tycoon Adani’s retirement plans. The Indian conglomerate has repeatedly denied the short-seller’s allegations.

Dollar bond sale

Adani Group may sell $1.5 billion worth of bonds by the end of February, mainly through the Adani Green Energy and Adani Energy Solutions Ltd. units and special purpose vehicles, people familiar with the matter said last month.

Dollar bond sales from Indian issuers are running at their highest in three years, with companies raising about $10 billion so far in 2024. Spreads on such debt from Asian investment-grade borrowers are near record lows, according to a Bloomberg index.

(By arrangement with livemint.com)