Adani Green plans to redeem $750-mn bonds due on Sept 9
Adani Green Energy, the renewables arm of the Adani Group, plans to redeem $750 million in bonds due on September 9, which has led yields to drop 60 basis points to 6.22%. The redemption will be financed through a mix of internal accruals, a $300 million infusion from strategic partner Total Energies (which holds a 19.75% stake), and $281 million from the promoters.
The company will also draw $169 million from the debt service reserve account, hedge reserves, and interest on reserves, sources said.
Post-redemption, Adani Green will shift away from issuing holdco bonds, focusing instead on bonds at the restricted group (RG) level.
The bond, previously infamous for its volatility, saw yields spike above 16% during the Hindenburg crisis, nearing junk status. Adani management assured investors that the financial plan for the $750 million bond would be prepared a year ahead of redemption, and the group's dollar bonds have since recovered. By April this year, this bond was trading at a yield to maturity of 7.86%.
Adani Enterprises, the group's flagship, will launch a public bond issue worth up to ₹800 crore on September 4. Since the Hindenburg event, the group has executed several debt transactions, including refinancing and securing new loan facilities and a dollar bond at the Adani Green RG level. The report had accused the group of stock manipulation and accounting fraud, allegations that the Adani Group has strongly denied.
In March, investors bought the first US dollar bond from the Adani Group
