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Subsidiaries of Adani Green Energy Limited (AGEL) are offering its US dollar bonds at an initial price guidance of 7.75% area for an issue capped at $600 million.
Books for the issuance have topped $1 billion, including $45 million joint lead manager interest.
The 20-year bonds are being issued by Adani Hybrid Energy Jaisalmer One, Adani Hybrid Energy Jaisalmer Two and Adani Solar Energy Jaisalmer One, together Hybrid (Solar and Wind) Renewables.
This is AGEL’s second attempt at issuing a bond after it was forced to pull a US$1.2 billion 20-year bond in October due to underwhelming demand.
“We expect the bond to price ~25% tighter than the IPT i.e. at 7.5% and hence we do not see material upside in the secondary market for the new bond; we will assign a recommendation for the new bond later, but suggest investors to participate solely for carry,” wrote CreditSights in an investor note.
The notes are expected to be rated BBB-/Stable (EXP) by Fitch, Baa3/Stable by Moody’s and BBB+/Stable by CareEdge.
Adani Green Energy develops, builds, owns and operates solar and wind farm projects.
(Reporting by Brinda Darasha; editing by Seban Scaria)
