According to people familiar with the situation, billionaire Gautam Adani's renewable energy firm intends to raise at least $2 billion in primarily fresh debt next year, capitalizing on newfound confidence among creditors in its ambitious development plans.
The Ahmedabad-based Adani Green Energy Ltd. is looking into various instruments such as private placement of debt, offshore bank loans, and dollar and rupee bonds, according to persons who asked not to be identified since the discussions are private. The company is in talks with global financial institutions about raising funds, which is expected to begin in early 2024.
A spokeswoman for the Adani Group did not respond immediately to questions about the company's debt-raising plans. The people indicated that discussions are still underway and that the parameters of the fund raising, including the size, could change. The company, which aims to have 45 gigatonnes of clean energy capacity by 2030, will hold a board meeting on December 26 to discuss finance alternatives.
According to Bloomberg, Adani Green's founders intend to invest $1 billion in the company. This will allow the company to raise more financing without negatively impacting its credit indicators.
According to one of the people familiar with the matter, Adani Green is looking to capitalise on possible upside in the global bond market – the US Federal Reserve is projected to decrease interest rates next year — as well as diversify its funding sources.
The ports-to-power giant has been quietly regaining investor and lender confidence in recent months, after overcoming a vicious short seller attack earlier this year that put it into trouble for months.
Following its denial of Hindenburg Research's charges of corporate fraud, the Adani Group has reduced its debt, attracted marquee worldwide investors, and even received US investment for its Sri Lanka port project. Adani shares also rose as a result of India's highest court's statement last month that it will not accept media stories about the group as "gospel truth," while deferring judgement on its investigation into Hindenburg's allegations.
