Adani Green calls off $1.2-billion bond issue
Adani Green Energy, India's largest private sector renewable power company, late on Tuesday called off its $1.2 billion bond issue after investors demanded a higher yield than what the company was ready to offer, citing geopolitical uncertainties, people aware of the details said.
«There was a lot of to and fro between the company and investors on the pricing of the issue. Investors were demanding better yields and the company was not willing to budge. Finally, the company decided to call off the issue and wait for a better time when geopolitical uncertainties subside and the US presidential election is done,» said a person familiar with the development.
«The company had built a $1.6 billion order book with large investors from Hong Kong, Switzerland and the US committing funds. But due to uncertainties linked mostly to the US election, investors were pricing in more risk which would cost the company 50-75 basis points (0.50-0.75 percentage point) more than a normal 20-year bond,» said another person aware of the matter. «The company hence decided to defer this issue and look at a better time in the second or third week of November or mid-January.»
The initial price guidance was for a fixed coupon rate of 7% for the 20-year bond. The bond proceeds were expected to help free up funds from an existing $3.4 billion revolving credit facility from banks that it could have in turn used to finance new projects, people familiar with the issue said.
An Adani spokesperson did not immediately reply to an email seeking
