2024-10-16 12:02:55 :
Billionaire Gautam Adani’s conglomerate chose to delay the sale of a 20-year green dollar bond on Tuesday after pitching the deal to investors hours earlier.
Adani Green Energy Ltd., the group’s clean energy business unit, is issuing the notes, with a final guidance price of 7%, according to a person familiar with the matter who asked not to be named. However, the person said late Tuesday that the proposed deal would not proceed at this time. Proceeds will be used to repay the foreign currency loan.
Trading may return
Adani plans to put the deal back on the market after the U.S. election in November, another person familiar with the matter said. Adani representatives could not immediately be reached after normal business hours in India.
The reversal comes as the group’s flagship Adani Enterprises Ltd. seeks to raise about $500 million by selling shares to institutions. A 2023 short-selling report by Hindenburg Research sent Adani Group shares plunging by more than $150 billion, after which conglomerates ranging from media to mining conglomerates began to refocus on growth opportunities.
Executives have since tried to rebuild investor confidence by cutting debt, advancing major projects and providing new details about the group’s future, including tycoon Adani’s retirement plans. The Indian conglomerate has repeatedly denied the short sellers’ accusations.
Adani Group may sell $1.5 billion worth of bonds by the end of February, mainly through its Adani Green Energy and Adani Energy Solutions Ltd units and special purpose vehicles, people familiar with the matter said last month.
Dollar bond sales by Indian issuers hit their highest level in three years, with companies raising about $10 billion through 2024. Spreads on such debt for investment-grade borrowers in Asia are near record lows, according to Bloomberg Indexes.
Disclaimer: This story was published from a news agency without modifications to the text. Only the title has been changed.
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