Adani Green Energy's $409-million bond sale oversubscribed 7 times

Adani Green Energy’s $409 million bond offer was oversubscribed seven times by overseas investors.

Several marquee investors like Jupiter, Schroders, Pimco, Metlife, AllianceBernstein participated in the offering.

This transaction represents the first bond deal for Adani Group since September 2021 and follows the successful equity raise of over $1.4 billion, which was completed in December last year.

The final order book, with a tenure of 18 years, stood at $2.8 billion, said a banker involved in the transaction.

“Due to strong demand, the final transaction was priced at 6.7 per annum at the fixed rate, which tightened from the initial price guidance of 7.125 per cent,” the banker said.

In January 2023, the group’s shares were hit by allegations made by the US-based short-seller Hindenburg Research, but they recovered after the US-based GQG Partners invested in the group's shares.

AGEL did not comment on the offering.

The proceeds will be used to refinance $500 million notes issued in 2019, which were due for repayment in late 2024.

The balance amount will be paid through the existing cash and MTM profit on hedges, the banker added.

The bonds were raised based on the company’s 930 Mw of Operational Solar Assets.

The banker added that 160 accounts participated in the book with responses from Asian investors at 45 per cent, 24 per cent from US-based investors, and 21 per cent from European investors. The rest came from West Asian investors.