Adani Green Energy raises $600 million via 20-year bonds
Adani Green Energy, India's largest private sector renewable power company, on Wednesday raised $600 million through a 20-year bond, sources close to the development told ET. This issue comes a month after the group postponed a $1.2-billion bond offering as some investors differed over pricing of the instruments.
ET reported on Monday the company would be raising $600 million through a bond issuance.
The company priced the bond at 7.45% and the proceeds of the issue will be used to refinance existing loan facilities of the company. The pricing of these bonds is much higher than the 7% targeted by Adani Green in the issue that was pulled out ultimately on October 15. Bankers said the more expensive pricing reflects the rise in the benchmark US treasury yield since that date.
The 10-year US treasury yield has risen to around 4.42% from around 4% on October 15, which has been reflected in the Adani bonds.
«The total order book after the opening of the US market was more than $2.1 billion, which allowed the company to price this bond at 7.45%, tighter than the initial guidance of 7.75%. The learning from last time was that it is better to do smaller size issues than look for a large one. So unlike in October, when the company wanted to raise more than $1 billion, this time the company was always looking to raise $600 million,» said a banking industry source.
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