Billionaire Gautam Adani’s conglomerate sold a 20-year green dollar bond Wednesday, about a month after postponing such an offering when some investors pushed back on pricing.
Units of clean-energy arm Adani Green Energy Ltd. sold $600 million of notes with a 7.45% yield, following initial discussions of around 7.75%, according to a person familiar with the matter who asked not to be identified. Final price guidance before October’s deal was pulled was 7%.
The new note was expected to yield around 7.5% given where other Adani Green debt trades, CreditSights analysts including Lakshmanan R and Jonathan Tan wrote in a research note ahead of the bond’s pricing.
Adani plans to use the sale’s proceeds to repay foreign-currency loans, the person said.
The media-to-mining group returned to the market as credit spreads on Asian dollar notes hit record-low levels after Donald Trump’s election victory boosted global risk appetite and fueled offerings in the primary market. Borrowers including Alibaba Group Holding Ltd. and State Bank of India sold more than $7.5 billion of debt in the first two days of this week, one of the busiest periods over the last month.
Spreads on Asian bonds with similar ratings to Adani’s new note have about tightened by about 10 basis points since mid-October, but 10-year Treasury yields have climbed by nearly 40 basis points in the same period, data compiled by Bloomberg show.
Adani has been refocusing on growth opportunities as it seeks to rebuild investor confidence following a short-seller report in 2023 by Hindenburg Research that sparked a more than $150 billion rout in Adani Group stocks.
