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Sources Say Adani Energy Is In Early Talks About a $500mn Bond Issue
(CTN News) – Adani Energy Solutions plans to raise $400 million-$500 million through a private placement of bonds, for which it is in early discussions with institutional investors in the United States, according to a company source and a banker familiar with the matter.
We are seeing strong interest from US insurance companies and pension funds in the coming three months,” the company source said.
A private placement of Regulation-D notes will be conducted with infrastructure assets serving as collateral, the sources stated. Under Regulation-D, some companies are exempt from the registration requirements associated with a public offering of securities.
As they are not authorized to speak to the media, both the company source and the banker requested anonymity.
The bankers have not yet been appointed, they said.
Reuters’ email inquiry to the Adani group communications team was not immediately answered.
Both sources indicate that Adani Energy Solutions, former Adani Transmission, is considering issuing bonds maturing in 20-30 years, although the terms of the issue have not been finalized.
It is likely that this will be the second dollar-bond issue by an group company in 2024. Separate from the Adani group, Adani Green Energy is currently conducting roadshows to raise $409 million through a US dollar bond offering.
It is expected that the deal will be priced next week.
A report by US short seller Hindenburg Research in January last year had caused a sell-off in stocks and overseas listed bonds of Adani group companies, resulting in them retreating from the foreign currency bond market and buying back $315 million of listed overseas debt securities and some other unlisted debt securities.
Despite this, most of the group’s foreign bonds are once again trading above their levels before the Hindenburg report was issued, giving the companies comfort to consider new dollar bonds.
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