Adani Group Hits Pause on $1.5 Billion Green Bond Sale Amid Market Uncertainty

Billionaire Gautam Adani’s company, Adani Group, has decided to postpone the sale of $1.5 billion worth of 20-year green bonds. This decision was made on Tuesday after the company had already begun marketing the bonds to investors.

The bonds were being offered by Adani Green Energy Ltd., a part of the group focused on clean energy, with initial pricing set at 7%. However, the sale will not take place at this time, according to an insider who wished to remain anonymous. The money from this bond sale was intended to pay off foreign currency loans.

The group plans to revisit the bond sale after the US elections in November. An Adani spokesperson was not available for comments outside of regular business hours in India.

This delay comes as Adani Enterprises Ltd., the flagship company of the group, is working on raising about $500 million through a share sale aimed at institutional investors. After facing a significant decline in stock value due to a report from Hindenburg Research in 2023, which claimed financial wrongdoing, the Adani Group has been focused on rebuilding trust with investors. They have been reducing their debt, progressing with major projects, and sharing future plans, including Gautam Adani’s retirement plans. The group has consistently denied the allegations made by Hindenburg.

Adani Group is now looking to potentially sell these bonds by the end of February, mainly through its Adani Green Energy and Adani Energy Solutions units.

In general, Indian companies have been quite active in the bond market, raising about $10 billion so far in 2024, with bond spreads for Asian investment-grade borrowers near record lows, according to Bloomberg data.