2024-11-21 15:02:02 :
MUMBAI – Vedanta Resources has postponed a planned dollar bond issuance over concerns that U.S. prosecutors’ charges against Adani Group Inc could drive up borrowing costs for Indian companies, two people familiar with the matter said on Thursday.
Earlier in the day, Adani Green withdrew a planned dollar bond issuance.
A source familiar with the developments said Vedanta decided to push its financing plan through the dollar bond route and may prefer to wait and see until current volatility cools and borrowing costs fall.
The company did not respond to an email from Reuters seeking comment.
The company had planned to raise funds through U.S. dollar bonds maturing in three years and six months.
Citigroup, Barclays, Deutsche Bank and Standard Chartered are joint global coordinators and lead managers. None of the lead managers responded to Reuters’ request for comment.
Indian billionaire Gautam Adani has been indicted by U.S. prosecutors for his alleged role in a $265 million scheme to bribe Indian officials, plunging his conglomerate into crisis for the second time in two years.
Adani Green Energy said in a statement that in light of these developments, the subsidiary has decided not to proceed with the proposed U.S. dollar bond issuance.
Share prices of group companies plummeted, while the companies’ dollar bonds were also hit hard.
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