Adani Group in discussions to offer $1.2 billion more bonds by June

By P R Sanjai and Baiju Kalesh

Billionaire Gautam Adani’s conglomerate is considering offering another $1.2 billion of dollar bonds by June, people familiar with the matter said, fresh off a note issuance this week that was also part of plans to raise at least $2 billion in mostly new debt this year.

The group’s renewable energy unit Adani Green Energy Ltd. and associated firms plan to raise funds to refinance existing loans, one of the people said, asking not to be identified because the details are private.

The company is discussing the planned transaction with arrangers and bankers. It expects to conclude the issuance in four months, one of the people said. An Adani Group representative didn’t offer an immediate comment.

The ports-to-power conglomerate this week saw huge demand for its first public bond sale since being targeted early last year by US short seller Hindenburg Research. Adani Green Energy and associated firms, together known as Adani Green Energy Restricted Group 1, pulled in around $2.9 billion of orders for a $409 million 18-year senior secured bond — about seven times the deal size. 

The offering’s success is another sign that the Indian conglomerate has regained the confidence of investors. The investor response further allayed fears it might have to pay dearly to raise overseas capital after Hinderburg’s accusations of fraud and stock manipulation — which the group has repeatedly denied — triggered a rout in the stock and bond prices of group firms.

Adani Green has said it plans to raise at least $2 billion in mostly new debt in 2024, including $409 million and other private placement options.