Adani aims for takeoff: Billion-dollar bonds on the radar

Gautam Adani's conglomerate plans to generate at least $1.5 billion by selling dollar-denominated bonds. This signal of a recovery following an attack by a short-seller underscores the company's drive to get back on the path to success. According to people familiar with the plans, who wish to remain anonymous, the proceeds are intended to refinance project debt. The Adani Group aims to complete the sales in multiple tranches by the end of February. The bonds are expected to be mainly issued under the entities Adani Green Energy and Adani Energy Solutions, as well as through special purpose vehicles. There is discussion over green or sustainability-oriented financial instruments, and negotiations are taking place with over 10 banks, including institutions from Japan, Europe, and the Middle East. A comment from the Adani Group is currently still pending. The conglomerate's re-entry into the dollar bond market occurred in March, following a report from short-seller Hindenburg Research in early 2023, which alleged fraud and stock manipulation. Adani has consistently and vehemently denied these allegations. Since then, the executives have been working intensively to restore investor confidence by reducing debt, advancing significant projects, and providing new information about the future of the company, including Adani’s retirement plans. The prices of the 18-year bonds issued by Adani earlier this year have consistently fallen in the secondary market since issuance and were traded at about 96 cents on the dollar on Thursday. Indian companies have so far taken on the largest amount of dollar debt of the last three years in 2024, nearly $10 billion, according to Bloomberg data. According to JPMorgan Chase & Co., firms could raise at least another $4 billion over the course of the year.