Gautam Adani’s group is reportedly in talks to raise about $500 million via dollar bonds, marking its first overseas issuance since a report by US short seller Hindenburg Research last year prompted concerns about its ability to refinance borrowings.
Bloomberg reported that the solar energy-producer Adani Green Energy Ltd. is discussing planned transaction with a group of foreign banks including a US firm. The sale is expected later this year and is yet to be finalized and the terms may still change, the report added.
Adani Group’s finances have drawn close scrutiny ever since Hindenburg Research accused it of fraud and stock manipulation. Adani Group has repeatedly denied the allegations which triggered a rout in the group’s shares and bonds. Following the allegations in January 2023, Adani group’s talks to refinance debt taken out for the purchase of Ambuja Cements Ltd. and ACC Ltd. stalled although it successfully completed the $3.5 billion funding package later in the year.
The company last month said that it had lined up the money to pay back the debt as required. The step would result in “significant deleveraging,” according to a statement. Adani has since then trimmed debt, pared founders’ share pledges and landed major projects which have helped in rebuilding confidence among investors and lenders. Adani stocks and bonds have recouped losses, and the group also won fresh equity capital from marquee investors including GQG Partners LLC. and Qatar Investment Authority, it was reported.
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