India's Adani Enterprises to issue first-ever public bond next week

Reuters Updated - August 28, 2024 at 09:24 AM.

India's Adani Enterprises plans to raise up to ₹8 billion rupees ($95.3 million), through its debut public issue of bonds, the company said on Wednesday.

The issue, which has a base size and greenshoe option of 4 billion rupees each, will open for subscription on September 4 and will close on September 17, the company said in an exchange filing.

The company will sell bonds of multiple maturities including two years, three years and five years. However, it did not disclose what the funds would be used for.

It will pay an annual coupon of 9.25 per cent, 9.65 per cent and 9.90 per cent on two-year, three-year and five-year bonds respectively.

In addition, bondholders will have an option of direct coupon payment at maturity, making the effective yield for the two-year, three-year and five-year bonds the same as the annual coupons.

For the three-year and five-year bonds, it will have an option of a quarterly interest payment, and the coupon for these papers is 9.32 per cent and 9.56 per cent.

Trust Investment Advisors, AK Capital Services and Nuvama Wealth Management are the lead arrangers for the issue, which is rated A+ by CareEdge.

In July, Reuters had reported that the company would launch its maiden retail bond issue in coming weeks.

Published on August 28, 2024 03:54

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