Adani Group plans to raise $1.5 billion through dollar bond sales

The Adani Group is currently discussing dollar bond sales with around 10 international banks, in order to raise an estimated $1.5 billion, according to media reports on Thursday.

The group plans to complete sale of the bonds in several parts by the end of February 2025 and use the money in debt refinancing, Bloomberg News said, adding that the conglomerate is considering to execute the sale under its renewable energy and power arms, Adani Green Energy and Adani Energy Solutions.

Without mentioning names, the news report stated that talks are currently going on between the group and leading banks in Europe, Japan and West Asia.

The development comes a day after the group’s flagship, Adani Enterprises, launched their first bond sale for individual investors, with plans to raise up to $ 95.3 million and diversify funding base. The issue was fully subscribed upon launch on Wednesday.

The Squirrels had reported on Wednesday that, of the total amount, 60 per cent has been earmarked for retail and high net-worth investors, 30 per cent has been allocated for non-institutional buyers including corporates, while Institutional investors will comprise 10 per cent. Around 75 per cent of the proceeds will go towards prepay or repay of company debt and the remaining amount is scheduled to be assigned towards corporate objectives.

The public issue, originally scheduled to close on September 17 this year, will have yields ranging from 9.25 per cent to 9.9 per cent, while bonds being offered in the issuance will be due in two, three and five years. AK Capital Services, Nuvama Wealth Management and Trust Investment Advisors are the lead managers of the Adani Enterprises public issue.

Earlier, in July 2024, Adani Energy Solutions Limited raised $1 billion through a share sale marking the largest deal in the energy sector of the country. The power transmission arm of the Adani Group raised the amount through a Qualified Institutional Placement (QIP) issue that witnessed oversubscription thrice over, with demand reaching Rs 26,000 crore. The issue, priced at Rs 976 per share, closed at Rs 1,135, marking a discount in listing of around 14 per cent.