Adani Transmission circles up second tranche of $90 million

Adani Transmission Ltd (ATL) said on Tuesday it has circled up its US private placement transaction of US dollar notes to the eligible international investors.

These notes are raised by six wholly-owned subsidiaries of ATL amounting to 400 million dollars. The first tranche of 310 million dollars was secured in January followed by 90 million dollars earlier this month.

The notes carry a fixed coupon over the tenor of notes. These instruments have an amortising structure matching the concession period and revenue profile of the 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 the first of its kind transaction.

"In light of current disruptions in markets, this transaction further underscores the strength of ATL assets, as we remain committed to long-term, sustainable stakeholder value creation," the company said in a statement.

ATL's strategy is to cater to the growing demands for power by expanding its network, especially in channelising green energy to consumptive centres of the country. The US note placement is a fixed-rate instrument that now fully mitigates interest rate risk for these asset companies.

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