Adani Green Lines Up Funding To Redeem $750 Million Bond

Billionaire Gautam Adani's renewable energy unit arranged the money to pay back its $750 million bond due in September, with some provided by the Indian tycoon and his associates' own cash pile.

Adani Green Energy Ltd. said $281 million would come from the preferential allotment of promoter shares, with $300 million from a joint venture with TotalEnergies SE and $169 million from financial reserves. 

The company said it had lined up the money as required eight months prior to the maturity date, which had "resulted in significant deleveraging," according to a statement on Monday. 

A year after US short-seller Hindenburg Research landed a bombshell report accusing the Adani Group of fraud - allegations officials have repeatedly denied  - the conglomerate has trimmed debt, pared founders' share pledges, won new backers from the US to the Middle East and bagged landmark projects. 

"Adani Green's delivery of its cash-backed redemption plan for $750 million of holdco bonds could improve access to project-backed financing in offshore markets," Bloomberg Intelligence analyst Sharon Chen said. "It relied on capital from the Adani family and TotalEnergies to fund this redemption, which strengthens its balance sheet." 

The terms of the Singapore-listed 2024 bond require the company to come up with a refinancing plan well ahead of the maturity. The solar energy firm had outlined the sums earlier this month, and a shareholder meeting to issue preferred securities was convened on Jan. 18. 

The Sept. 8 2024 bond, which recouped the Hindenburg-induced losses late last year, inched up 0.7 cents on the dollar to 97.87 cents per dollar at 2:03pm in Singapore on Monday. 

Also on Monday, shares in Adani Enterprises, the flaghip, gained after Cantor Fitzgerald initiated coverage of the stock with an overweight recommendation. 

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