Adani Group returns to dollar market with new green bond sale initiative

By Saikat Das
 

Billionaire Gautam Adani’s conglomerate is returning to the dollar bond market this year for a second time, underscoring the group’s improved access to funding channels after being rocked by a short-seller barrage.
 

Units of the group’s clean-energy business, Adani Green Energy Ltd. are marketing a green 20-year note in the US currency on Tuesday, as that business ramps up spending to boost capacity. Proceeds from the proposed bond will be used to repay foreign-currency loans, according to a person familiar with the matter who asked not to be identified. 

The bond sale comes as the conglomerate’s flagship firm Adani Enterprises Ltd. seeks to raise about $500 million in a share sale to institutions. The media-to-mining conglomerate 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. 

The 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. The Adani Green subsidiaries are marketing the dollar bond on Tuesday with initial price guidance of around 7 per cent.   

Dollar bond sales from Indian issuers are running at their highest in three years, with companies raising about $10 billion so far in 2024, as spreads on dollar debt hover near their lowest in decades, a Bloomberg index shows.

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