Adani Energy Solutions plans $360-million US bond issuance
Adani Energy Solutions (AESL), erstwhile Adani Transmission Ltd is planning a private placement of bonds worth $360 million, said a company executive.
«We are looking for a private placement of $360 million of transmission assets which were commissioned in the last three to four years. That is a size of $360 million, transactions and paperwork all are underway,» Rohit Soni, chief financial officer, AESL told analysts on the company's Q2 earnings call.
Separately, the company's distribution arm, Adani Electricity on Monday announced a tender offer to buy back up to $120 million of its outstanding 3.949% $1,000 million senior secured notes due 2030.
Adani Electricity, a Mumbai-based power utility, services over 12 million consumers and meets over 2,000 MW of power demand in Mumbai.
«The tender offer is being fully funded through its cash surplus and internal accruals and will help reduce the leverage of the company in line with the Adani portfolio companies to consistently improve financial matrices,» the company said in a regulatory filing, adding that it will, from time to time, carry out similar market actions all the way to the maturity of the Bonds subject to market conditions using the available liquidity of the company.
«Such market action will enhance investor confidence and support in improving current dislocation of the yield curve due to external parameters (including high-interest rate environment). The buyback programme will not only stabilize the yields of its outstanding bonds but also provide a superior outcome – both to bond investors as well as shareholders,» it said.
AESL's scrip ended at Rs 759.10, down 1.19% on the BSE Monday.
