Adani Green Energy withdraws bond issuance plan due to high yield demands

India's Adani Green Energy has shelved its plan to raise funds through US dollar bonds as investors demanded higher yields than the company was willing to pay. Initially, an attractive interest rate of seven percent was considered for the 20-year term. A banker directly involved in the transaction stated that some investors requested higher yields due to general uncertainties caused by the upcoming US presidential elections and domestic political risks in India. These circumstances could affect the repayment ability of bond issuers. The withdrawal comes at a time when the Adani Group had just returned to the dollar bond market. In early 2024, it had repositioned itself after facing massive allegations from the short-seller Hindenburg Research the previous year, which led to a $150 billion drop in market value. In March, Adani Green successfully raised $409 million, with bids nearing $3 billion. This latest bond venture was led by Adani subsidiaries Adani Hybrid Energy Jaisalmer One, Adani Hybrid Energy Jaisalmer Two, Adani Hybrid Energy Jaisalmer Four, and Adani Solar Energy Jaisalmer One. The bonds were intended to refinance existing construction loans in US dollars. Emails sent outside regular business hours to these four entities went unanswered. The bond's contractual clauses were to be determined on an aggregate basis, with each entity guaranteeing the obligations of the others.