Adani Green delays $1.2 billion bond sale as market worries mount

Gautam Adani-led conglomerate Adani Green Energy has postponed the sale of its $1.2 billion in bonds amidst thin market conditions and a lack of clarity over the result of the US presidential elections.

The clean-energy part of the conglomerate had planned to issue a 20-year green note as part of its financing strategy. However, after launching investment-grade Hybrid RG notes, the company decided to delay issuing to a later date with the aim of achieving a tighter pricing outcome.

Sources familiar with the matter said that events around the US elections contributed to this decision, in which Adani Green ultimately concluded that immediate options such as onshore bonds and bank financing would yield better results. Proceeds from the bond issue were to be used to refinance loans taken in foreign currency.

Though the company received a good response to the bond launch, it is of the view that waiting for better market conditions will improve the pricing opportunity. Currently, Adani Green is considering two window options for bond issuance in the windows: immediately after the US elections or in the second week of January 2025, after the New Year break.

Underwritten by 1,840 MW of operational wind-solar hybrid assets, Hybrid RG notes carry investment-grade ratings from Fitch and Moody's, making them a strong credit option within the renewable energy space in India.