Adani Green Set To Raise $500 Million Using Dollar Bonds
Adani Green Energy, is planning to raise about $500-750 million by selling dollar bonds, as it plans to refinance its debt and expand its business, said two people familiar with the matter.
The bond-sale could be rated in the high-yield category with BB+, or BB grade this is lower than India’s sovereign rating, which is known as investment grade in market parlance.
The dollar-denominated security is to be raised under the Regulation S programme, which is available to global investors outside the US. The company, which was listed on the stock exchanges two weeks ago, has already appointed some investment bankers, including Barclays, MUFG, and Citi.
The bond-sale is expected to end a dry spell in the overseas market as the US Treasury yields have been raising the borrowing cost. Adani papers could be of 5 to 10-year maturities where rates may be in the range of 7-8%, depending on investor response, market sources told a leading newspaper.
Adani Green is the renewable energy part of the Adani Enterprises. Adani Green shares started trading from June 18, and on day one the stock hit the 5% upper limit, but pared its gains later. It fell about 11% since its debut to close at Rs.26.25 on Tuesday. The company has a current market capitalisation of about Rs.4100 crore.
Adani Green has projects in Tamil Nadu and Punjab. The Adani Group at Kamuthi in Tamil Nadu commissioned the world’s largest single location solar power project. It also has a solar plant based out of Bathinda, Punjab.
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