Adani Green secures $750 mln to repay due bond

Gautam Adani’s renewable energy unit secured funds to repay its $750 million bond due in September, with some of the money coming from Adani and his associates’ personal funds, the company stated on Monday, according to Bloomberg.

Adani Green Energy Ltd. announced that it would raise $281 million through the preferential allotment of promoter shares, $300 million from a joint venture with TotalEnergies SE, and use $169 million from its financial reserves.

The company announced that it had arranged the necessary funds eight months before the due date, leading to significant deleveraging.

A year after Hindenburg Research accused Adani Group of fraud, an allegation the company has consistently denied, the conglomerate has reduced its debt, cut back on founders’ share pledges, attracted new supporters from the U.S. to the Middle East, and secured significant projects.

Bloomberg Intelligence analyst Sharon Chen stated that Adani Green’s cash-backed redemption plan for its $750 million bonds could enhance its access to project-backed financing in foreign markets. The plan, funded by the Adani family and TotalEnergies, strengthens its balance sheet.

The Singapore-listed 2024 bond mandates the company to prepare a refinancing plan well before its maturity. The solar energy company had detailed the amounts earlier this month and held a shareholder meeting on Jan. 18 to issue preferred securities.

The Sept. 8, 2024 bond, which recovered from last year’s Hindenburg-induced losses, rose by 0.7 cents to 97.87 cents per dollar at 2:03 p.m. in Singapore on Monday. Additionally, Adani Enterprises shares increased after Cantor Fitzgerald started covering the stock with an overweight recommendation.