Indian billionaire Gautam Adani’s conglomerate has delayed a planned issuance of 20-year green dollar bonds. Units of Adani Green Energy Ltd., the group’s clean energy division, had been preparing to offer the bond with a final price guidance of 7%, according to sources familiar with the deal. However, the issuance has been temporarily shelved, with the proceeds initially earmarked for repaying foreign-currency loans.
The Adani Group is now expected to revisit the bond sale following the US election in November, sources close to the matter indicate. The timing aligns with Adani Enterprises Ltd., the group’s flagship entity, which is concurrently raising around $500 million through a share sale to institutional investors. This strategic move is part of the conglomerate’s focus on growth and recovery, following a difficult period highlighted by a 2023 report from US short-seller Hindenburg Research that led to a $150 billion reduction in Adani Group’s market value. In response, Adani has been working to rebuild investor trust by cutting debt, advancing major projects, and sharing further details about future plans.
Looking ahead, Adani Group may issue $1.5 billion in bonds by the end of February, predominantly through its Adani Green Energy and Adani Energy Solutions Ltd. units, as well as various special purpose vehicles. In recent months, Indian issuers have ramped up dollar bond sales, raising nearly $10 billion in 2024—the highest level in three years. Currently, spreads on Asian investment-grade bonds are near record lows, indicating favourable conditions for debt issuance in the region, according to Bloomberg data.
