Adani Green Energy seeks $400 million loan for capex push
Adani Green Energy, which is looking to develop a 25 gigawatt portfolio by 2025, is in advanced talks with Rabobank, MUFG, SMBC and DBS for a $400 million loan, according to people familiar with the development. The loan is likely to be priced at a secured overnight financing rate (SOFR) plus 250 basis points with a five-year tenor, they said.
A basis point is a hundredth of a percentage point.
The renewable energy arm of Adani Group will use the funds for capital expenditure, said one of the persons, who did not wish to be identified.
In addition to this loan, Adani Green is planning to raise a $1.3 billion bond in the next two months, after the general elections. Last month, it became the first Adani Group company to raise funds through a dollar note sale after a year of the release of the US-based short seller Hindenburg Research's report alleging wrongdoings at the group, showing signs of investor confidence. The $409 million issue was oversubscribed seven times.
Adani Green used $409 million raised through US dollar notes to refinance its five-year bullet of $500 million senior secured notes due in 2024.
«Adani Green had raised $409 million through an 18-year senior secured green bond, which garnered significant investor interest and was oversubscribed seven times. Now, the company is preparing to launch a larger bond issuance, capitalising on the strong investor demand,» said a third person close to the development. «The new fundraising will happen under 144 Reg S and could commence after the ongoing
