Billionaire Gautam Adani’s renewable energy unit is planning to raise at least USD 2 billion in mostly new debt next year, people familiar with the matter said, as it capitalizes on renewed confidence among creditors in its ambitious expansion plans.
Ahmedabad-based Adani Green Energy Ltd. is exploring various instruments including private placement of debt, offshore bank loans as well as dollar and rupee bonds, the people said, asking not to be identified as the talks are private. The firm is in discussions with global financial institutions for the fundraising that is likely to start in early 2024, they added.
A representative for the Adani Group didn’t offer any immediate comments on the company’s plans for raising debt.
Deliberations are ongoing and details of the fund raising, including size, could still change, the people said.
The company, which has a target of 45 gigawatts of clean energy capacity by 2030, has a board meeting on Dec. 26 to consider fundraising options.
Bloomberg on Thursday reported that Adani Green’s founders plan to inject USD 1 billion equity into the company. This will give the firm room to raise more debt without worsening its credit metrics.
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Adani Green is hoping to tap into potential upside in the global bond market — the US Federal Reserve is expected to cut interest rates next year — as well as diversify its funding sources, said one of the people.
The ports-to-power conglomerate has been steadily clawing back support from investors and lenders in recent months after moving past a withering short seller attack earlier this year that plunged it into crisis for months.
Since denying Hindenburg Research’s allegations of corporate fraud, the Adani Group has pared debt, attracted marque global investors and even secured US funding for its Sri Lanka port project.
Adani stocks also saw a relief rally after India’s top court said last month it won’t take media reports on the conglomerate as the “gospel truth” while reserving verdict on its probe into Hindenburg’s allegations.
