Mumbai: Having raised $2.7 billion through dollar bonds in 2019, the most raised by a private sector group last year, Gautam Adani's group is going back to the dollar bond market to raise $1 billion for it's Mumbai electricity distribution business.
Adani Electricity Mumbai Ltd (AEML), a unit of Adani Transmission Ltd, which produces and supplies electricity to Mumbai, has launched its maiden dollar bond offering, eyeing as much as $1 billion, according to a term sheet seen by Mint.
Mint had first reported on 29 September that the Adani group was planning to refinance AEML debt through dollar bonds.
"The proceeds will be used to repay existing rupee debt of AEML as well as for other general corporate purposes as permitted under the regulations," said a person aware of the company's bond offering, requesting anonymity as he is not authorized to speak to the media.
Credit Suisse, Deutsche Bank, DBS Bank, Emirates NBD Capital, J.P. Morgan, MUFG, and Mizuho Securities are advising AEML on the bond offering.
On Tuesday, AEML's parent Adani Transmission announced that it had raised $310 million in dollar-denominated debt through a private placement to US-based investors.
“Adani Transmission Ltd has circled up its US private placement transaction of USD notes to the eligible international investors. This USD denominated notes are raised by six wholly owned subsidiaries of Adani Transmission Ltd amounting to $310 million. The proposed US note placement, which will be fixed rate instrument, will mitigate interest rate risk for these companies," the company said.
Adani group companies have been the most active of private sector companies in the US dollar bond market in the last 12 months.
Last July, Adani Ports and Special Economic Zones Ltd had raised $650 million to buy back bonds of a similar amount maturing in 2020, while in June it had raised $750 million through a separate bond sale.
Adani Green Energy Ltd raised $500 million in May and followed it up with another bond issuance of $362.5 million in October. Adani Transmission raised $500 million in November.
Last year, the transmission and distribution business sold a minority stake in its Mumbai electricity distribution company, Adani Electricity Mumbai Ltd (AEML), to Qatar Investment Authority for $450 million. AEML is the licencee for an integrated power distribution, transmission and generation business that currently serves more than three million consumers in Mumbai.