Adani Green Energy Ltd. is considering reviving its previously cancelled dollar bond issuance between April and June, according to Group Chief Financial Officer Jugeshinder Singh. This move underscores the conglomerate's resilience despite the ongoing US investigation into founder Gautam Adani.
“Once we find clarity, we’ll revive the dollar bond sale,” Singh stated during his first media interaction since the US indictment came to light last week. The development had caused turbulence in Adani stocks, led Adani Green to cancel its $600 million dollar bond issuance, and prompted an inquiry from India’s market regulator.
Additionally, the renewable energy company plans to raise up to $500 million by February, either through banks or a private placement in the offshore market, Singh said at an event in Mumbai.
Other companies within the Adani Group may also look to raise funds through public bond sales in India over the next 12 months, Singh noted.
The diversified ports-to-power conglomerate, which faces $3 billion in refinancing needs next year, has been highlighting its substantial cash reserves of $6.3 billion, emphasising that this will be sufficient to meet all its financial obligations.
“No planned acquisition will be put on hold, and there will be no roll back of capital expenditure,” he added.
US federal prosecutors alleged last week that Gautam Adani, Asia's second-richest person, and his associates were involved in a scheme to offer over $250 million in bribes to Indian government officials in exchange for solar energy contracts. The bribes were reportedly concealed while attempting to raise funds from US investors.
The allegations caused a dramatic $34 billion decline in the market value of Adani Group firms, placed their credit ratings under review, and prompted partners like TotalEnergies SE to halt new investments.
In response, the Adani Group has made a concerted effort to reset the narrative. This week, the conglomerate released a credit report on Monday to reassure investors and creditors about the solid financial health of its businesses. A filing by Adani Green on Wednesday addressed the accusations against Gautam Adani and his nephew, Sagar Adani, clarifying that they had been indicted for securities fraud and wire fraud conspiracy, not for violations of the US Foreign Corrupt Practices Act as initially claimed.
Singh reiterated that no Adani Group company was implicated in the US investigation. He added that the individuals involved, including Adani and other founders, would respond to the US Department of Justice within the next 10 days.
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