Adani Green sketches out plan for repaying $750m bond

Adani Group’s solar-energy unit has unveiled an initial blueprint for repaying its $750 million bond due next year, extending a rally in the debt as the Indian conglomerate rebuilds confidence after a market rout earlier this year.

Adani Green Energy, part of billionaire Gautam Adani’s empire, will redeem the notes in full by its September 8 due date, it said in a filing to Singapore’s stock exchange. The bond’s underwriters will provide a funding letter for $675 million and the company will use equity transaction proceeds to build up the repayment sum, it added.

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The filing, which also lists $75.47 million in restricted reserves, didn’t specify what the funding letter will contain or where the equity transaction proceeds will come from.

Still, the bond extended its rally for a fifth day to touch the highest since April 2022, according to Bloomberg-compiled data. The bond rose 0.1 cent on the dollar at 11:20 a.m. Singapore time. All but one of Adani Group’s other US currency notes also climbed.

The finances of Adani Group’s various subsidiaries have attracted investor attention after US short seller Hindenburg Research accused the conglomerate of corporate fraud earlier this year, allegations that the group has repeatedly denied. While some of the group’s dollar bonds have fully recouped their losses, other remain below their pre-crisis level.

The plan “might not fully ease concerns, unless it confirms that it has committed funding in place,” Bloomberg Intelligence analyst Sharon Chen wrote in a note.

The terms of the Singapore-listed September 2024 bond require Adani Green to come up with a refinancing plan nine months before maturity. The firm’s chief financial officer Phuntsok Wangyal told analysts on an earnings call earlier this year that a “liquidity pool” had been created to be tapped for repaying the notes.

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Adani Group’s executives have sought to restore investor trust after Hindenburg’s broadside: they prepaid debt, held in-person meetings with investors from Hong Kong to London, and spent hundreds of millions of dollars repurchasing the debt of units including Adani Electricity Mumbai and Adani Ports and Special Economic Zone.

Just this week, Adani Green raised a $1.4 billion loan for a renewable energy project, fueling a stock rally in the conglomerate’s units that boosted their collective market value by $23 billion.

© 2023 Bloomberg

Roy Walsh

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