Adani Green Energy seeks $400 million loan for capex push

The arm of Adani Group will use the funds for , said one of the persons, who did not wish to be identified.

In addition to this loan, Adani Green is planning to raise a $1.3 billion bond in the next two months, after the general elections. Last month, it became the first Adani Group company to raise funds through a dollar note sale after a year of the release of the US-based short seller Hindenburg Research's report alleging wrongdoings at the group, showing signs of . The $409 million issue was oversubscribed seven times.

Adani Green used $409 million raised through US dollar notes to refinance its five-year bullet of $500 million senior secured notes due in 2024.

"Adani Green had raised $409 million through an 18-year senior secured green bond, which garnered significant investor interest and was oversubscribed seven times. Now, the company is preparing to launch a larger , capitalising on the strong investor demand," said a third person close to the development. "The new will happen under 144 Reg S and could commence after the ongoing elections."

Spokespersons of Adani Group, Rabobank, SMBC and MUFG did not respond to ET's queries regarding the development. DBS declined to comment. Adani Group's has revived over the past one year.

The group has 15 listed bonds for ports, renewable energy, distribution and transmission assets.

Spreads between Adani bonds' yield to maturity (YTM) and comparable US G-Sec treasury bond yields have shrunk substantially for the overseas-listed Adani bonds in recent months and are the best since the beginning of January 2023. While the spread between government securities and Adani Group bonds was 150-382 bps, it has shrunk to 90-290 bps now. Until September 2023, the group had raised around ₹80,000 crore from global investors across 15 companies, which is 34% of the total debt of ₹2.26 lakh crore.

For instance, Adani Green Energy's $750 million bond due in August 2024, which was issued at 4.375% in 2021, is now trading at a YTM of 7.86%. The spread between the 10-year US treasury and bond, which had risen to 326 bps, has now dropped to 241 bps. This is also because S&P Global, Fitch and Moody's have upgraded the outlook for Adani Ports & SEZ, Adani Electricity Mumbai (a subsidiary of ) and Adani Green Energy.

Adani Green Energy's operational portfolio consists of 7,393 MW solar, 1,401 MW wind and 2,140 MW wind-solar hybrid capacity. The company is developing a renewable energy project of 30,000 MW on 538 sq km of barren land at Khavda in Kutch, Gujarat.

The company has operationalised 2,000 MW cumulative solar capacity within 12 months of commencing work. Adani Green Energy has locked-in projects of 21.8 GW and an operating renewable portfolio of about 10.9 GW, the largest in India, spread across 12 states.