For the first time since the Hindenburg crisis, the Adani Group met with investors in Singapore, marketing an overseas bond to bolster investor confidence around its businesses before fresh bond sales.
Adani Group’s executive reached Singapore on Wednesday, the first stop on a tour of international financial hubs to win over buyers for roughly $409 million of new debt. Hong Kong is on the itinerary for Thursday.
As per the repots, the roadshows are part of efforts to reassure investors of its ability to service its debt obligations through prudent financial planning, operational efficiency, and strategic asset monetization initiatives while also addressing any lingering doubts stemming from the Hindenburg crisis.
The debt being marketed to investors in Singapore to be would have a tenor of 18 years, with the funds earmarked for redeeming $500 million of notes maturing in December. Renewables unit Adani Green Energy Ltd. and other group companies are listed on the mandate, published earlier this week.
During these engagements, the Adani Group is expected to outline its expansion plans across various verticals, including renewable energy, ports, airports, and infrastructure.
Reportedly, the group has told investors through regulatory filings that it is working to create a liquidity pool of cash and cash equivalents to repay $750 million of Adani Green’s holding company bonds sold in 2019 and maturing in September next year.
It has also committed to pay in cash a $650 million bond tranche of Adani Ports and Special Economic Zones due by July, of which it has already paid $325 million this year.
In various announcements since January, the group has said it will spend close to Rs 2.5 lakh crore across businesses.
Fitch Ratings expects to grade the new bonds at BBB-, at the low end of investment grade. That’s still higher than notes they’re replacing, which had a tenor of only five years.