Adani Green Energy has the option to raise funds to meet its debt refinancing obligations through a private placement of bonds overseas or approach banks, and it is planning to raise anything between $500 million and $1 billion by February 15 next year, Jugeshinder Singh, its Group CFO said. 

Last week, Adani Green scrapped its $600 million bond issuance, part of a larger $1.2 billion fund raising program, following the indictment by US prosecutors of founder Gautam Adani and others as being part of an alleged bribery scheme in India to win solar energy contracts.

Singh said that there would not be a public issuance of US dollar bonds, such as the one scrapped, until there was more clarity on the indictments against the individuals in the group and the facts of the matter had been made public. He said only then appropriate disclosures can be made in any public offer of bonds. He ruled out any public issuances till June of next year. 

However, a private placement such as a Reg D offering can be made, where companies can sell securities without registering with the US Securities and Exchange Commission. The original plan had been to raise half of the total refinancing amount through a public issue and the other half through a private placement.

The group as a whole has around $3 billion worth of repayments coming up over the next 12 months, part of which is expected to be refinanced through bank facilities. 

 Jugeshinder Singh , CFO, Adani group

 Jugeshinder Singh , CFO, Adani group | Photo Credit: jaishankar

Domestic debt

With respect to domestic debt issuances, Singh said that the companyexpected around 3-4 transactions over the next 9-12 months, but did not specify any details. 

Responding to queries as to whether the foreign banks were cautious about funding companies in the group following the US indictment, Singh said that he had received messages from some banks ready to extend support.

He also made it clear that none of the projects of the group would stop. The risk stance of the group for its publicly stated growth plan is “we do not need any external capital from anybody.” It had enough cash and internal accruals to meet its requirements.

AP project

With respect to the 3 GW Adani Green solar project in Andhra Pradesh, which has run into controversy with conflicting reports on it, Singh responded that the company had not heard anything from the State government on it. 

On queries on the impact if the Andhra government cancels the contract, Singh said he would be ‘happy’ as it had contracted to sell power at ₹2.40 per unit while in the market could sell at ₹3 per unit. 

Related Topics