Adani Green to Pay Off $750 Million Debt on September 9, Easing Investor Concerns

Adani Green Energy, part of the Adani Group, is planning to pay off $750 million in bonds due on September 9. This news has led to a drop in bond yields by 60 basis points to 6.22%. The company will use a combination of internal funds, a $300 million investment from its partner Total Energies (which owns nearly 20% of the company), and $281 million from its promoters to fund the repayment.

Additionally, Adani Green will use $169 million from its debt service reserve account and other reserves. After this payment, the company plans to move away from issuing bonds at the holding company level and will focus on bonds at the restricted group (RG) level instead.

These bonds were once highly volatile, with yields soaring over 16% during the Hindenburg crisis, almost reaching junk status. Adani’s management assured investors that a financial plan for the $750 million bond would be ready a year before its due date, and the company’s bonds have since recovered. By April this year, this bond was trading with a yield of 7.86%.

Adani Enterprises, the group’s main company, will also launch a public bond issue worth up to ₹800 crore on September 4. Since the Hindenburg report, which accused the group of stock manipulation and fraud (claims the group strongly denies), Adani has completed several debt transactions, including refinancing and securing new loans and a dollar bond at the Adani Green RG level.

In March, investors showed strong interest in the first US dollar bond issued by Adani Group after the Hindenburg event, with the $409 million bonds being oversubscribed by more than seven times, lowering borrowing costs. These 18-year bonds were priced at 6.70%.

Adani Green Energy currently operates a renewable energy portfolio of over 11.2 GW across 12 states. The company reported a 31% increase in revenue in the first quarter of FY25, reaching ₹2,834 crore, compared to ₹2,162 crore the previous year.