Adani Transmission circles up first ever US private placement for $310 million

Adani Transmission Ltd (ATL), the largest private sector power transmission company operating in India, said on Tuesday it has circled up US private placement transaction of dollar notes to eligible international investors.

The USD denominated notes are raised by six wholly-owned subsidiaries of ATL amounting to 310 million dollars carrying fixed coupon over the tenor of notes. These instruments have an amortising structure matching the concession period and revenue profile of issuer companies.

This is the first time that an Indian company has circled up the transaction for its proposed US private placement in over a decade. From transmission business, this is first of its kind transaction.

The company's strategy is to cater to the growing demands for power by expanding its network especially in the deficit parts of the country. The proposed US note placement which will be fixed-rate instrument will mitigate interest rate risk for these companies.

With this recent round of placement, ATL now has a 30-year, 10-year and 17-year paper in the market.

"We are delighted to raise these funds from our US stakeholders. This will help us mitigate interest rate risk in our tariff-based competitive bidding (TBCB) projects," said Managing Director and CEO Anil Sardana.

"We aim to expand our network to meet the growing demands of a transmission and distribution sector. The funds will enable us to support efforts toward scaling infrastructure and improving electrification, and bridging gap between the supply and demand for power," he said in a statement.

"The placement is a strong endorsement of global investors' confidence in ATL as a value creator and leader in the power sector contributing toward sustainable growth the country," added Sardana.

Barclays and Bank of America acted as the financial advisors in securing the deal and have held roadshows for the Baa2/BBB- rated borrower over the past few months.

ATL is the transmission business arm of the Adani Group, one of India's largest business conglomerates. It is the country's largest private transmission company with a cumulative transmission network of more than 14,800 circuit km of which more than 11,470 circuit km is operational.