Billionaire Gautam Adani’s company, Adani Green Energy Ltd., recently arranged the necessary funds to repay its $750 million bond, which is due in September. The company managed to secure the funds through various sources, including cash reserves, a joint venture with TotalEnergies SE, and the preferential allotment of promoter shares, with a significant portion contributed by Adani and his associates.
Adani Green Energy Ltd. announced that $281 million would be sourced from the preferential allotment of promoter shares, $300 million from the joint venture with TotalEnergies SE, and $169 million from its financial reserves. This proactive approach enabled the company to secure the required funds eight months ahead of the maturity date, resulting in substantial deleveraging, as stated in a recent announcement.
The move comes in the wake of allegations made by US short-seller Hindenburg Research, which accused the Adani Group of fraud a year earlier. Despite the allegations, the conglomerate has made strides in reducing debt, releasing founders’ share pledges, attracting new investors from various regions, and securing significant projects.
According to Bloomberg Intelligence analyst Sharon Chen, Adani Green’s successful execution of its $750 million bond redemption plan backed by cash could enhance its access to project-backed financing in international markets. The capital infusion from the Adani family and TotalEnergies strengthens the company’s financial position and balance sheet.
The terms of the 2024 bond, listed in Singapore, stipulate that the company must devise a refinancing plan well in advance of maturity. Adani Green Energy Ltd. disclosed the financing details earlier in the month and convened a shareholder meeting on January 18 to issue preferred securities.
Following the announcement, the value of the September 8, 2024 bond, which had previously suffered losses attributed to Hindenburg’s allegations, experienced a slight increase of 0.7 cents on the dollar, reaching 97.87 cents per dollar at 2:03 pm in Singapore on Monday.
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