Adani Green Energy bond sale worth $409 million oversubscribed seven times | Business News – Business Standard
Adani Green Energy’s $409 million bond offering was oversubscribed seven times by foreign investors.
Several major investors such as Jupiter, Scroders, Pimco, Metlife, Alliance and Bernstein 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 closed in December last year.
The final order book, with an 18-year term, was $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 percent,” the banker said.
In January 2023, the group’s shares were hit by allegations from US-based short seller Hindenburg Research, but recovered after US-based GQG Partners invested in the group’s shares.
AGEL did not comment on the offer.
The proceeds will be used to refinance $500 million of notes issued in 2019, which were due for repayment at the end of 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 45 percent of Asian investors, 24 percent of US-based investors and 21 percent of European investors. The rest came from West Asian investors.
First print: March 5, 2024 | 9:33 PM IST