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Adani Green names banks for $409 million bond sale

The bond sale is the group’s first such overseas issuance after a report by short seller Hindenburg last year raised concerns about its finances

Adani Green names banks for $409 million bond sale
[Source photo: Chetan Jha/Press Insider]

Adani Green Energy Ltd has named banks including Barclays Bank, DBS Bank, and Emirates NBD Bank to sell about $409 million bonds in the Adani group’s first such securities sale following the release of US short seller Hindenburg Research’s report on its finances.

The bonds will have a tenor of 18 years and will be used to redeem $500 million securities maturing this year, the firm’s statement to the stock exchanges said.

The joint bookrunners (banks) will arrange a series of fixed income investor meetings in Asia, the Middle East, Europe and the US beginning February 28, Wednesday, the company said.

The other banks that Adani named are Deutsche Bank, First Abu Dhabi Bank, Intesa Sanpaolo, SMBC Nikko Securities, MUFG Securities Asia, Societe Generale, ING Bank, and Standard Chartered Bank.

Adani Green shares were down 2% from Tuesday’s close to ₹1,940 apiece at 10.40am on Wednesday, while the Sensex was little changed at 73,111.80.

A Hindenburg report released in January last year led to a sell-off in equity and debt of Adani group firms, forcing the group withdraw from foreign securities markets and repurchase about $315 million of overseas debt.

In a related development, Fitch Ratings assigned Adani Green Energy Restricted Group 1’s (AGEL RG1) proposed 18-year fully amortizing senior secured notes due 2042 an expected rating of ‘BBB-(EXP)’.

It assigned a stable outlook to AGEL RG1, which the group aims to use to refinance its five-year bullet $500 million senior secured notes due 2024, Fitch Ratings said in the release.

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