Adani Green Energy Ltd, the renewable energy arm of billionaire Gautam Adani‘s conglomerate, announced that it had arranged funds to repay its $750 million bond due in September, almost eight months ahead of schedule. The company disclosed that the funding came from various sources, including preferential allotment of promoter shares, joint ventures, and financial reserves.
According to the statement released on Monday, Adani Green Energy’s proactive approach in securing the required funds well in advance of the maturity date resulted in significant deleveraging, strengthening its financial position.
The move comes a year after the Adani Group faced allegations of fraud by US short-seller Hindenburg Research, which the conglomerate vehemently denied. Despite the challenges, the group has managed to reduce debt, release founders’ share pledges, attract new investors, and secure major projects.
Bloomberg Intelligence analyst Sharon Chen commented, “Adani Green’s cash-backed redemption plan for the $750 million holdco bonds could enhance its access to project-backed financing in offshore markets.” Chen highlighted the company’s reliance on capital from the Adani family and TotalEnergies to fund the redemption, which bolstered its balance sheet.
The terms of the Singapore-listed 2024 bond necessitated Adani Green Energy to devise a refinancing plan well ahead of the maturity date. The company had previously outlined the funding sources earlier this month, with a shareholder meeting convened on January 18 to issue preferred securities.
The positive development led to a slight uptick in the value of the September 8, 2024 bond, which had recovered from losses incurred following the Hindenburg allegations.
In addition to the bond repayment news, Adani Enterprises, the flagship company of the conglomerate, saw its shares rise after Cantor Fitzgerald initiated coverage with an overweight recommendation.
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