2024-12-12 05:30:06 :
In addition to domestic financial institutions, the group is also in talks with investors and lenders in West Asia, Europe and Japan for private placements to refinance loans, people familiar with the matter said.
The development comes as the group scrapped plans for a $1.2 billion offshore bond issuance in the last week of November after founder Gautam Adani and other executives were indicted by the U.S. Department of Justice. And there are other uncertainties including coupon rates. in the international market.
“AGEL has multiple leverage options to choose from. Rates are better in the domestic market after adjusting for additional costs such as hedging,” one of the people said, adding that while refinancing looks more feasible at the moment, the dollar could be re-evaluated “Clarity” emerges from the market (for any potential bond issuance).
“While the U.S. dollar market is offering higher maturities, domestic institutions are also offering meaningful long-term maturities of 10-15 years to extend refinancing facilities,” the first person said.
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Although the refinancing plan has not yet been formalized, two people said the promoters could also choose to inject equity into AGEL by converting part of its warrants worth about $10 billion. $70 billion rupees. “If there is market volatility and the promoters inject capital, the refinancing amount may be different,” the first person said.
Adani Green Projects secured a $1.1 billion loan from a group of overseas banks, mostly backed by guaranteed cash flow from a 25-year PPA (power purchase agreement), giving the group a preference for tenure, the two said. Longer refinancing facilities.
“The current credit facility (scheduled for refinancing) is short-term, so pricing may be less relevant. We have the option of refinancing in the domestic market at 8.5% and in the international banking market at 9%. “
An email sent to Adani Group remained unanswered as of press time.
Why Adani is seeking refinancing
Through the planned refinancing, the group aims to free up part of its existing US$3.5 billion overseas revolving credit facility, thereby increasing the overseas credit limit to approximately US$5 billion or more. This may occur if the refinancing is done through a domestic bank or private placement.
If existing loans are not refinanced, financing may be disrupted and the Group’s existing ongoing projects may be hampered. In addition, it is also crucial for the group to release part of its revolving credit line in order to obtain long-term financing and smoothly progress project work.
To be sure, the Adani Group has set an ambitious renewable energy portfolio target of 50GW by 2030, with about 11.8GW of projects (mainly in Rajasthan and Gujarat) under execution.
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According to its latest financial data, AGEL had $1.3 billion in cash and operating income of approximately $1.4 billion as of the end of September. “The equity for the 50GW target is in place through internal accruals,” the first person said.
Adani Green shares closed down 2.39% on Wednesday $BSE is 1,148.10.
background
On the eve of repayment in March 2025, the Adani Group has been facing challenges regarding the indictment in the US court. On November 25, Gautam Adani was indicted by the U.S. Department of Justice for his alleged role in a $265 million scheme to bribe certain Indian officials to obtain Adani Green. Adani Green.
The group denies the allegations, which include being a director of Adani Green.
On December 6, brokerage JPMorgan Chase gave four bonds of the Adani Group an “overweight” rating and ruled out “any signs of stress” from the group, saying that the leverage ratio of most of the bonds was less than five times.
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JPMorgan said the main bond-issuing entity to watch is Adani Green, which has a $1.1 billion loan due in March 2025.
AGEL’s debt portfolio mainly consists of offshore debt, including bonds and loans, the report added. Adani Green had approximately 44% offshore debt exposure at the end of fiscal year 2024 (FYE24), while APSEZ (Adani Ports and Special Economic Zone Limited) had approximately 82% offshore debt exposure, mainly through USD bonds .
To be sure, Mint It was reported on November 25 that from an overall group perspective, half of the Adani Group $Long-term debt borrowed from overseas reached 2.38 trillion.
A person close to the bank who has had discussions with Adani Group said that in the wake of the US indictment, Adani Group is actively planning ways to persuade global investors and banks to accept viable financing terms.
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