Adani Group is looking to raise $1.2B through fresh bonds
What's the story
The Adani Group is reportedly thinking of issuing an additional $1.2 billion worth of bonds in US dollars by June, as part of their plan to raise at least $2 billion this year.
Bloomberg reported that Adani Green Energy, the group's renewable energy subsidiary, and its related companies intend to use the funds to refinance existing loans.
The company is currently in talks with arrangers and bankers about the planned transaction and aims to complete the issuance within four months.
Strong demand
Strong demand for Adani stocks
Earlier this week, Adani witnessed strong demand for its first public bond sale since being targeted by short seller Hindenburg last year.
Adani Green Energy and associated firms, collectively known as Adani Green Energy Restricted Group 1, received around $2.9 billion of orders for a $409 million 18-year senior secured bond—nearly seven times the deal size.
This successful offering suggests that investor confidence in the group has been restored after allegations of fraud and stock manipulation by Hindenburg.
Road to recovery
Regaining investor confidence
Adani Green has announced its intention to raise at least $2 billion in mostly new debt in 2024, including the $409 million and other private placement options.
The company's efforts to secure funding and refinance loans demonstrate its commitment to growth and financial stability, despite facing challenges from short sellers and market fluctuations.