Adani Green to raise over $400M through dollar bonds
What's the story
Adani Green Energy aims to raise $409 million through US dollar-denominated bonds, featuring an 18-year door-to-door tenor, as stated in a regulatory filing. This marks the first time an Adani group company has ventured into the overseas bond market in a year. Dollar bonds are used to attract a greater range of investors since they carry a lower currency risk for US-based creditors.
Utilizing funds
Bond issuance to be used to refinance senior secured notes
The funds generated from the bond issue will be utilized to refinance the $500 million worth of 6.25% senior secured notes due in 2024, initially issued on June 10, 2019. The bond's weighted average life could be around 12.7 years, depending on market conditions. Fitch Ratings has assigned Adani Green Energy's bonds, due in 2042, a rating of 'BBB-(EXP)' with a stable outlook.
Bookrunners appointed
Joint bookrunners have been appointed for investor meetings
Several banks, including Barclays, Deutsche Bank, Emirates NBD Bank, First Abu Dhabi Bank, and Standard Chartered Bank, have been appointed as joint bookrunners. They will arrange a series of fixed income investor meetings across the world starting February 28. The move comes after a report by US short seller Hindenburg Research last year led to a sell-off in stocks and overseas listed bonds of Adani group companies and a subsequent buyback of $315 million of listed overseas debt securities.