Adani Group delays $1.5 billion worth 20-year Green Bond sale amid market conditions

Billionaire Gautam Adani’s conglomerate opted to postpone a sale of 20-year green dollar bonds Tuesday after hours earlier marketing the deal to investors.

Units of the group’s clean-energy business, Adani Green Energy Ltd., were offering the note and final price guidance was set at 7%, according to a person familiar with the matter who asked not to be identified. However, the proposed deal won’t go ahead at this time, the person said later Tuesday. Proceeds were to be used to repay foreign-currency loans.

Deal Likely to Return

A separate person familiar with the matter said Adani plans to bring the deal back to the market following November’s US election. An Adani representative was not immediately available after normal business hours in India.

The reversal comes as the conglomerate’s flagship firm, Adani Enterprises Ltd., seeks to raise about $500 million in a share sale to institutions. The media-to-mining group has been refocusing on growth opportunities after rebounding from a short-seller report in 2023 by Hindenburg Research that sparked a more than $150 billion rout in Adani Group stocks.

Since then, executives have attempted to rebuild investor confidence by trimming debt, advancing major projects and offering new details on the conglomerate’s future, including tycoon Adani’s retirement plans. The Indian conglomerate has repeatedly denied the short-seller’s allegations.

Adani Group may sell $1.5 billion worth of bonds by the end of February, mainly through the Adani Green Energy and Adani Energy Solutions Ltd. units and special purpose vehicles, people familiar with the matter said last month.

Dollar bond sales from Indian issuers are running at their highest in three years, with companies raising about $10 billion so far in 2024. Spreads on such debt from Asian investment-grade borrowers is near record lows, according to a Bloomberg index.

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