Billionaire Gautam Adani's conglomerate is in talks with global banks to raise at least $1.5 billion through dollar bond issues, signaling the group's recovery from a short seller attack.
According to persons familiar with the arrangements, the proceeds would be used to restructure project debt. They asked to remain anonymous to discuss confidential details. According to two sources, Adani Group plans to finalize the transactions in numerous tranches by the end of February.
Furthermore, as per the sources, bonds would be issued primarily through the Adani Green Energy Ltd. and Adani Energy Solutions Ltd. subsidiaries, as well as special purpose vehicles. The plans include the selling of green or sustainability-linked securities, and conversations with more than ten banks, including those in Japan, Europe, and the Middle East, are ongoing, according to the sources. The Adani Group did not immediately respond to a request for comment.
In March, the company returned to the dollar bond market for the first time since early 2023, when short seller Hindenburg Research accused it of fraud and stock manipulation. Adani has frequently refuted the allegations.
Since then, executives have worked to restore investor trust by reducing debt, advancing important projects, and providing fresh information about the conglomerate's future, including tycoon Adani's retirement plans. Prices of the 18-year notes sold by Adani early this year have progressively decreased in the secondary market since their issuance, trading at approximately 96 cents on the dollar on Thursday.
In 2024, Indian corporations purchased the greatest amount of dollar debt in three years, raising about $10 billion, according to Bloomberg data. JPMorgan Chase & Co. predicts that firms will raise at least $4 billion more this year.
