Adani Energy Solutions, formerly Adani Transmission, is reportedly planning to raise $400-500 million through a private bond offering. The company is allegedly in preliminary discussions with US institutional investors about the financing.
According to a Reuters story citing sources, the acquisition is expected to go through within the next three months. According to the source, Adani Energy is attracting significant interest from US insurance companies and pension funds.
Meanwhile, Adani Energy Solutions' shares were last seen trading 1.35 percent higher at Rs 1,079.90 today. Turnover on the counter was Rs 5.79 crore, with a market capitalisation of Rs 1,20,462.05 crore.
The fundraising will take the form of a private placement of Regulation-D notes, a measure that exempts some corporations from the registration procedures connected with public offerings of securities, using infrastructure assets as collateral.
Adani Energy Solutions intends to sell longer-term bonds expiring in 20-30 years, although the terms of the offering have yet to be confirmed, according to sources. This is likely to be the second dollar-bond issue by an Adani Group company in 2024.
Adani Energy Solutions is part of the Adani group, which was subjected to a critical study by US short-seller Hindenburg Research in January last year, resulting in a sell-off in the group's public company stocks and listed bonds. The group was compelled to exit the foreign currency bond market and repurchase $315 million in listed overseas debt securities, as well as some unlisted debt.
Separately, Adani Group announced on Thursday that its financial position has improved and that the company sees no refinancing risk in the short term as it seeks to strengthen its finances in the aftermath of the Hindenburg report.
