Adani Green Energy To Raise $409 Million US Dollar Bonds To Repay Debt

Adani Green Energy said that the raised funds will primarily be allocated to redeem the $500 million 6.25 percent senior secured notes due in 2024

Adani Green Energy Ltd, the renewable energy arm of Gautam Adani's conglomerate, has disclosed its plan to raise $409 million through US dollar-denominated bonds aimed at repaying an impending debt obligation. According to a regulatory filing, the bond will span a period of 18 years from inception to maturity.

The company specified that the raised funds will primarily be allocated to redeem the $500 million 6.25 percent senior secured notes due in 2024. These notes were initially issued on June 10, 2019. Additionally, three subsidiaries of Adani Green Energy Twenty-three Ltd, a unit of AGEL, will act as co-issuers for the bond issuance.

AGEL boasts a significant portfolio comprising 20,844 MW of operational and under-execution projects dedicated to solar energy electricity generation.

Separately, Fitch Ratings said it has the proposed bond issue an expected rating of 'BBB-(EXP)'. "The Outlook is Stable." "The company plans to use the proposed US dollar notes to refinance its five-year bullet $500 million senior secured notes due 2024. The proposed notes will have security and protective structural features similar to the existing bullet notes," it said.

The proposed notes will be issued in part by each of the three subsidiaries - Adani Green Energy (UP) Ltd, Parampujya Solar Energy Pvt Ltd and Prayatna Developer Pvt Ltd.

"The issuers directly own operating assets and are not merely lenders to the operating entities, unlike other rated issuance from most Indian" restricted groups," Fitch said. "The final rating is contingent upon the receipt of final bond documents conforming to information already received." The issuers have appointed Barclays, DBS Bank, Deutsche Bank, Emirates NBD Bank, First Abu Dhabi Bank, ING Bank, Intesa Sanpaolo, MUFG Securities Asia, SMBC Nikko Securities, Societe Generale and Standard Chartered Bank as joint bookrunners to arrange a series of fixed income investor meetings in Asia, the Middle East, Europe and the United States starting February 28.