Adani Green Energy, the renewable energy subsidiary of the Adani Group and India’s largest renewable energy company, has postponed its $1.2 billion IG-rated notes. Due to weak market conditions, the company decided to delay the issuance until after the U.S. elections.
The hybrid renewable assets include 1,840 MW of operational wind-solar hybrid assets, which have been rated as investment grade (IG) by Fitch and Moody’s. These assets are among the strongest credits in the Indian renewable market. The notes are expected to attract investors due to their strong credit ratings and will now be issued after the U.S. elections.
Why was the issuance postponed? Adani Green Energy launched the IG-rated hybrid RG notes on Tuesday. However, after consideration, the company decided to postpone the issuance until after the U.S. elections to achieve better pricing and results.
The decision to delay was influenced by uncertainties surrounding the U.S. elections. Adani Green felt that the overall pricing, compared to other available options like onshore bonds and bank financing, was not favorable at the moment.
Where will the funds be used? The funds raised from the proposed bonds will be used to repay foreign currency debts.
While the bond issuance received positive feedback, the company aims to achieve better pricing and has decided to wait. They are considering issuing the bonds either after the U.S. elections or in the second week of January 2025, after the New Year holidays.
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