Business
Adani Green CFO Hints at Dollar Bond Revival by Mid-2025 Amid Market Recovery
Adani Green CFO Hints at Dollar Bond Revival by Mid-2025 Amid Market Recovery
Group Chief Financial Officer Jugeshinder Singh announced on Friday that Adani Green Energy Ltd. is thinking of starting up its $600 million bond offering again between April and June 2024. Despite the difficult conditions, this decision comes after the recent upheaval brought on by the US inquiry against the group’s founder, Gautam Adani. Singh stressed in his first media appearance since the US indictment was made public that the business will resume the dollar bond offering as soon as it had more clarification on the matter. Following the US investigation, which precipitated a steep decline in Adani stocks and prompted a regulatory investigation by India’s market regulators, the original bond offering was canceled.
Singh said that Adani Green intends to use banks or private placements in the offshore market to fund up to $500 million by February. Over the course of the upcoming year, other Adani Group firms may potentially think about selling public bonds in India. Singh confirmed that Adani Green has a healthy cash reserve of $6.3 billion, which will handle refinancing needs, including $3 billion in payments due next year, despite the uncertainties surrounding the group’s legal and financial difficulties.
No Impact on Acquisition Plans or Capital Expenditure
Singh emphasized the group’s resiliency by saying that planned acquisitions and capital expenditures will not be rolled back. Gautam Adani and his accomplices were charged last week by US federal authorities for bribing Indian government officials for solar energy contracts with over $250 million. Adani firms’ market value has dropped by $34 billion as a result of these accusations, their credit ratings have been downgraded, and partners including TotalEnergies SE have suspended future investments.
Also Read: Adani Stocks Plunge Up to 20% After Gautam Adani Indicted by US Over Alleged $250 Million Bribe Plot
The Adani Group has responded by releasing a credit report confirming the robust financial standing of its companies to reassure investors. Claims that Adani and his nephew Sagar Adani violated the US Foreign Corrupt Practices Act were denied in a recent filing by Adani Green. Rather, they said that the allegations were related to conspiracy to commit wire fraud and securities fraud. Singh promised that the accused, including the Adani founders, will reply to the US Department of Justice within the next ten days and restated that no Adani Group entity is connected to the US probe.
