The two Adani Group entities, Adani Ports and SEZ and Adani Airport Holdings, are in discussions with merchant bankers to raise up to Rs. 1,500 crore each through local currency bonds, according to Reuters.
According to a Reuters article citing a corporate executive and bankers, these two companies will likely be the first in the billionaire Gautam Adani-led Adani Group to access the bond market as part of the company’s ambition to raise 10,000 crore in FY24.
The sources told the media agency that these corporations might begin issuing bonds with a maximum term of five years as early as September.
The article further stated that Adani Enterprises and Adani Electricity Mumbai are considering potential debt problems.
According to one of the sources who spoke to Reuters, “The (Adani) group is testing investors’ appetite for its securities and will tap the market only when there will be a comfort of demand.”
The Securities & Exchange Board of India (SEBI), the market regulator, would likely deliver a report on its inquiry into Hindenburg’s allegations by Monday, according to the report. Only then will the plans be finalized.
The newspaper cited insiders who said, “Post that, all these fundraising plans may start getting finalized as initial talks have already started.”
The financing is a part of the Adani group’s return to the regional bond markets following a sabbatical since January, when a report by US short-seller Hindenburg Research raised doubts about the organization’s corporate governance and caused a significant selloff in the Adani group equities.
However, Adani Group has occasionally refuted these accusations.
