Adani's Hybrid Renewables RG1 has pulled an expected US$1.2bn 20-year partially amortising bond after it attracted a book of only US$1.4bn, including US$100m of lead interest.

The issuer had set a yield of 7% for the deal, which was in line with initial guidance of 7% area, before withdrawing the green bond.

"Hybrid Renewables RG1 has decided not to proceed with the proposed [US dollar] 144A/Reg S senior secured transaction at this time. They would like to thank investors for their credit work and the interest expressed and the issuer looks forward to re-engaging with investors in the future," the issuer said in a statement.

The bond had a weighted-average life of 13.6 years. It was to be issued and mutually guaranteed by a restricted group of subsidiaries Adani Hybrid Energy Jaisalmer One, Adani Hybrid Energy Jaisalmer Two, Adani Hybrid Energy Jaisalmer Four and Adani Solar Energy Jaisalmer One.

They operate a 1.84GW portfolio of wind and solar hybrid assets in Rajasthan. The bond was to be secured over equity shares and fixed assets of the issuers.

DBS Bank, Emirates NBD Bank, First Abu Dhabi Bank, ING, Intesa Sanpaolo, Mizuho, MUFG, SMBC Nikko, Societe Generale and State Bank of India were bookrunners.

Proceeds from the bond, which was to be rated Baa3 by Moody's and BBB– by Fitch, were to be used to repay the companies' foreign currency loans that were used to fund solar-wind hybrid power plants.

Source: IFR