Mumbai: The Adani Group is working on a plan to raise $350 million through dollar bonds next year, primarily to refinance a $500 million RG1 (restricted group 1) bond due to mature in December 2024.
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RG1 is restricted group with solar generation capacity of 930 MW and includes three subsidiaries of Adani Green – Adani Green Energy (UP) Limited, Parampujya Solar Energy Private Limited (PSEPL) and Prayatna Developer Private Limited.
The group may also call the bonds in July 2024, six months ahead of maturity.
“We can call the December bond on July 7 without paying pre-payment penalty and complying with RBI guidelines,” said Jusgeshinder Singh, CFO of Adani Group at Trust Group’s India Debt Capital Market Summit 2023. “Theoretically, we would like to go ahead and call the paper around that time.”
Singh said the group has prepared for both private placement and bond issues to refinance the paper maturing in December 2024. Addressing the funding requirements for a $750 million bond due in September 2024, Singh said the target is to complete this by December 10-11, adding that the company already has arranged the necessary funds for this particular bond by way of internal accruals.
For the September 2024 bond, Adani has set up an escrow account as part of the bond redemption reserve account, as stipulated in the original bond document, he said. Adani plans to issue the compliance certificate by December 10-11.
Singh also spoke about the group looking to invest Rs 7 lakh crore in infrastructure in the coming decade.
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He expressed confidence in Adani’s ability to manage upcoming financial debt obligations and debt-raising. “We have a lot of demand for USD bonds at Adani Group” he added. “Our companies are ready for Reg D and Reg S 144 issuances. The issue (launch) will depend on the specific demand. Reg D bond will have a tenure of 18 years plus.”
Reg S bonds are sold to non-US investors, while Reg D bonds are offerings within the US, usually to investors without full public registration.
In all Adani Group has raised $9 billion debt from global markets through the issuance of 17 bonds. Among these bonds, Adani Green Energy’s $750-million, 4.375% bond maturing in September 2024 has seen the most volatility.
In response, the management had put in place a financial plan by July this year, assuring investors that funds would be placed in escrow one year ahead of maturity.
Adani Green Energy’s 2024 dollar notes rebounded after dropping to the 60s following the Hindenburg report, which accused the group of stock price manipulation and accounting fraud. Adani Group has strongly refuted these allegations.
On selling non-core businesses, Singh said the group wants to be in the top 3 in any sector it is in.
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On Adani Wilmar, he said that the group is currently studying whether to retain or divest the Adani Wilmar stake, and the company will take a decision within the next three months.
