Adani Enterprises Ltd plans to raise $10 Billion via it’s 1st public bond sale
Following a market rout, Adani Enterprises Ltd has shelved a plan to raise up to $10 billion ($121.65 million) through its first-ever public bond sale, according to people familiar with the matter.
Bloomberg reported in December that the flagship firm of Indian billionaire Gautam Adani’s empire had planned the public note issuance for January, in collaboration with Edelweiss Financial Services Ltd., AK Capital, JM Financial, and Trust Capital. However, according to the people who asked not to be identified because the matter is private, activity has now ceased.
The news is the latest in a string of setbacks for the conglomerate, which was accused of stock manipulation and accounting fraud by US-based shortseller Hindenburg Research late last month. Despite the group’s vehement denials, its stock and bond prices have plummeted.
The turmoil last week forced Adani Enterprises to withdraw a record 200 billion-rupee follow-on public offer of shares, which is a stark contrast to just a few months ago, when the conglomerate was looking to raise funds to fund expansion plans. The yield on an Adani Green Energy Ltd. bond soared over 36% last week, indicating how prohibitively expensive any attempted debt financing for group firms could now be.
According to Moody’s Investors Service, the market rout will likely reduce the group’s ability to raise funds for capital expenditure projects or refinance debt over the next year or two.
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