Adani Energy Solutions to raise $500 mn through private placement of bonds: Report

Adani Energy Solutions, formerly Adani Transmission, is reportedly planning to raise around $400-500 million through a private placement of bonds. The company is reportedly in early talks with US institutional investors over the fundraise.

According to a report in Reuters that quoted people in the know, the deal is expected to materialise in the next three months. The source stated that Adani Energy is seeing strong interest from US insurance companies and pension funds. 

Meanwhile, shares of Adani Energy Solutions were last seen trading 1.35 per cent higher at Rs 1,079.90 today. Turnover on the counter came at Rs 5.79 crore with a market capitalisation of Rs 1,20,462.05 crore.

The fundraise will be a private place of Regulation-D notes, a provision that exempts some companies from registration requirements associated with public offering of securities, with infrastructure assets as collateral. 

Adani Energy Solutions is looking to issue longer-tenor bonds maturing in 20-30 years but has not finalised the terms of the issue, the sources told the news agency. This will likely be the second dollar-bond offering by an Adani group company in 2024.

Adani Energy Solutions is part of the Adani group that was subject to a damning report by US short-seller Hindenburg Research in January last year, leading to a sell-off in stocks and listed bonds of the group’s public companies. The group was forced to retreat from the foreign currency bond market and buy back $315 million of listed overseas debt securities alongside some other unlisted debt.

Separately, on Thursday, Adani Group stated that its cash pile has improved and the conglomerate sees no refinancing risk in the near term as it aims to shore up its finances in the aftermath of the Hindenburg report.