18 Nov 2024
Adani Green Energy is aiming to raise approximately $2 billion in the coming months through a combination of international bonds and debt, as reported. The company is set to launch a $600 million bond in the next few days. This follows the postponement of a $1.2 billion bond issuance last month as investors sought higher yields amid on-going geopolitical uncertainties.
In the previous attempt, the company proposed a fixed coupon rate of 7% for the 20-year bond. However, this time the pricing is expected to be higher, reflecting rising yields in global markets, including the 10-year US Treasury rate, which recently reached its highest level since May 31, the report said.
Concentrated on Supportive Financing
The report also stated that the proceeds from the bond issuance will be allocated to three of Adani Green's subsidiaries in Rajasthan, which are engaged in wind and solar energy projects. In contrast, the company is seeking a private placement for its remaining subsidiary, with plans to finalise a 20-year term agreement by early 2025.
Earlier, Adani Green had secured a $3.4 billion construction framework agreement with international banks, including DBS, Mizuho, SMBC, MUFG, and ING, among others. Now, the company is shifting its focus to bond markets in order to decrease its dependence on short-term loans and extend its debt maturity to 20 years. Additionally, it plans to increase the framework agreement to $5 billion to fund upcoming projects.
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