Adani Group delays $1.5 billion worth 20-year Green Bond sale as investors bid at higher yields

Units of Adani Green Energy Ltd., part of the group’s clean-energy business, had been offering the bonds, with a final price guidance set at 7 percent, Bloomberg reported, citing a source familiar with the development.

However, the deal was postponed later on Tuesday, and the funds were originally intended to repay foreign-currency loans.

According to the Bloomberg report, another source indicated that Adani plans to revisit the bond sale after the US election in November.

An official spokesperson for Adani Group was not immediately available for comment after business hours in India.

This decision comes as Adani Enterprises Ltd., the conglomerate's flagship company, is looking to raise around $500 million through a share sale to institutional investors.

The conglomerate, which spans sectors from media to mining, has been focusing on growth after recovering from a 2023 short-seller report by Hindenburg Research, which led to a more than $150 billion plunge in Adani Group stock values.

Since the Hindenburg report, Adani executives have been working to restore investor confidence by reducing debt, advancing major projects, and sharing more details about the group’s future plans, including Gautam Adani’s retirement strategy.

The conglomerate has consistently denied the allegations made by the short-seller.

Adani Group may proceed with the $1.5 billion bond sale by the end of February, likely through Adani Green Energy, Adani Energy Solutions Ltd., and special purpose vehicles, sources told Bloomberg.

Dollar bond sales by Indian companies have surged to their highest levels in three years, with firms raising approximately $10 billion in 2024. Spreads on debt from Asian investment-grade borrowers are nearing record lows, as per a Bloomberg index.