Adani Group Taps Dollar Bond Market as Indian Issuers Reach 3-Year High

Billionaire Gautam Adani’s business group is returning to the dollar bond market for the second time this year, showing its stronger access to funding after facing issues from a short-sellers attack. 

Adani Green Energy Ltd, part of the group’s clean-energy division, is offering a 20-year green bond in US dollars to raise funds, which will be used to pay off foreign-currency loans. This comes as the company aims to increase its capacity.

On October 15, 2024, the Adani Green Energy Ltd share price opened at ₹1,777.00, touching the day’s low of ₹1,758.00 as of 1:17 PM on the NSE. 

At the same time, Adani Enterprises Ltd., the group’s main company, is planning to raise about $500 million through a share sale to institutional investors. After recovering from the 2023 short-seller report by Hindenburg Research, which led to a $150 billion drop in the value of Adani Group’s stocks, the conglomerate has focused on growth by reducing debt and pushing forward key projects. The group has consistently denied the short-seller’s claims.

Adani Group may sell up to $1.5 billion in bonds by February, primarily through Adani Green Energy, Adani Energy Solutions Ltd., and other related entities. On Tuesday, Adani Green’s subsidiaries are offering the bond with an initial interest rate of around 7%.

Indian companies have sold around $10 billion worth of dollar bonds in 2024, marking the highest level in 3 years. This increase comes as interest rates on dollar debt are close to their lowest in decades.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.