Adani Green Energy Ltd. (AGEL), part of Indian billionaire Gautam Adani’s conglomerate, is moving forward with its plan to raise $600 million through a bond issuance, after a previous attempt was postponed in October. The funds will support the company’s growing portfolio of renewable energy projects, specifically solar-wind hybrid ventures.
Investor Outreach and Structure
The bond issuance will be led by three of AGEL’s subsidiaries: Adani Hybrid Energy Jaisalmer One, Adani Hybrid Energy Jaisalmer Two, and Adani Solar Energy Jaisalmer One. To promote this offering, the subsidiaries have begun a series of investor calls starting November 18, aimed at generating interest in the benchmark-sized US dollar bonds.
The bonds are structured as 144A/Reg S notes, with a 20-year maturity and a weighted average life of approximately 13.09 years. These long-term instruments are designed to secure funds to support Adani Green’s renewable energy initiatives, particularly solar-wind hybrid projects.
Credit Ratings and Security
The bond deal has been assigned the following preliminary credit ratings:
- BBB-/Stable by Fitch
- Baa3/Stable by Moody’s
- BBB+/Stable by CareEdge
These ratings reflect the investment-grade status of the deal, though they also highlight the risks associated with market volatility and global interest rates. The bonds will be secured by equity shares, assets, and receivables from the issuing entities, providing investors with additional confidence in the stability of the offering.
Purpose of the Fundraising
The funds raised through this bond issuance will primarily be used to repay existing foreign currency loans. These loans had been utilized to finance solar-wind hybrid projects under AGEL’s “Hybrid Restricted Group Green Finance Framework,” established in August 2024. This refinancing is crucial to maintaining the liquidity and financial health of AGEL as it continues to expand its renewable energy capacity.
Postponement and Market Conditions
Originally, AGEL had planned to offer a similar bond issuance in October, with a projected yield of 7%. However, the deal was postponed due to rising market volatility and increasing US interest rates, which impacted the attractiveness of new bond offerings. The yield on AGEL’s existing 2042 notes has since risen to 7.2%, signaling changing conditions in the global financial markets.
Joint Bookrunners and Market Support
The bond offering will be supported by a range of international banks acting as joint bookrunners, including:
- DBS Bank
- Emirates NBD Bank
- First Abu Dhabi Bank
- ING
- Intesa Sanpaolo (London)
- Mizuho Securities (Singapore)
- MUFG
- SMBC Nikko
- State Bank of India (London)
These prominent financial institutions will help facilitate the bond issuance process, providing both liquidity and market access for the Adani Group.
Adani’s Renewable Energy Strategy
This bond issuance underscores Adani Green Energy’s long-term strategy to secure funding for its ambitious renewable energy projects. The company is focused on scaling its solar and wind capacity, as part of India’s broader shift to clean energy. With this move, Adani is positioning itself as a key player in the global transition to sustainable power, while strengthening its financial foundation for future growth.
As Adani Green Energy pushes forward with its green energy ambitions, this bond deal marks a critical step in securing long-term financing, which is vital for the continued development of its renewable energy portfolio.
