According to persons familiar with the situation, billionaire Gautam Adani’s renewable energy division intends to raise at least $2 billion in primarily fresh debt next year to take advantage of creditors’ renewed faith in its ambitious expansion plans.
According to persons who asked not to be named because the discussions are confidential, Ahmedabad-based Adani Green Energy Ltd. is looking into a number of instruments, such as dollar and rupee bonds, offshore bank loans, and private placement of debt. For the fundraising, which is anticipated to begin in early 2024, the company is in talks with international financial institutions, they noted.
Regarding the company’s intentions to raise debt, an Adani Group representative did not immediately provide any comments.
According to the persons, discussions are still going on and the specifics of the fund-raising, particularly its amount, may still alter.
The board of the company, which aims to have 45 gigawatts of sustainable energy capacity by 2030, will meet on December 26 to discuss ways to raise money.
According to sources on Thursday, the founders of Adani Green intend to invest $1 billion in the business. This will allow the company to take on additional debt without having its credit score deteriorate.
According to one of the persons, Adani Green wants to diversify its funding sources and take advantage of any potential gains in the global bond market, as the US Federal Reserve is anticipated to lower interest rates next year.
After overcoming a withering short seller onslaught early this year that sent it into a months-long crisis, the ports-to-power giant has been gradually regaining confidence from lenders and investors in recent months.
Since refuting Hindenburg Research’s claims of corporate fraud, the Adani Group has reduced its debt, drawn prestigious international partners, and even obtained US backing for its port project in Sri Lanka.
A relief rise was also seen in Adani stocks after India’s highest court declared last month that it would not accept media reports about the group as the “gospel truth” while delaying its decision on its investigation into Hindenburg’s claims.
