India’s Adani Group is reportedly in talks to raise $1.8 billion through the sale of bonds, according to sources familiar with the matter. The move is seen as an attempt to restore investor confidence following a damaging report released by Hindenburg Research in January alleging corporate misconduct over several years. The report led to a steep decline in the group’s stocks and bonds.
Key points:
- Adani Group is reportedly planning to raise $1.8 billion through bond sales to shore up investor confidence following allegations of corporate misconduct by Hindenburg Research.
- Bonds are expected to be issued by several of Adani Group’s companies, including Adani Ports and Special Economic Zone Ltd., and Adani Electricity Mumbai Ltd., with the amount raised potentially doubling the initial target.
- Adani is in discussions with Barclays Plc, Deutsche Bank AG, and Standard Chartered Plc for a loan between $600 million and $750 million to refinance debt from its Ambuja Cements acquisition.
- Adani New Industries Ltd. recently raised $394 million for a solar module project through a trade finance facility from Barclays and Deutsche Bank.
The proposed notes are expected to be sold in small lots, ranging from 5 billion to 10 billion rupees, and are earmarked to meet capital expenditure requirements. Several companies within the Adani Group are expected to issue these bonds, including Adani Ports and Special Economic Zone Ltd., Adani Electricity Mumbai Ltd., Mumbai International Airport Ltd., Navi Mumbai International Airport Ltd., and the flagship Adani Enterprises Ltd.
The bond sale operation is set to accelerate in the next two months, and the total amount raised could be double the initial target, one source indicated. However, the plans are still under deliberation and are yet to be finalized.
This move by the Adani Group comes in the wake of vigorous damage control following the Hindenburg Research’s report. Despite the allegations, Adani Enterprises managed to raise 12.5 billion rupees earlier this month through the sale of Indian bonds.
In a separate initiative, the Adani Group is negotiating with Barclays Plc, Deutsche Bank AG, and Standard Chartered Plc to secure between $600 million and $750 million to refinance debt incurred from the acquisition of Ambuja Cements Ltd. Additionally, Adani New Industries Ltd. has successfully raised $394 million via a trade finance facility from Barclays and Deutsche Bank for a solar module project.
Representatives of the Adani Group have yet to comment on these developments.
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