Adani Green, Adani Ports shares in focus as Adani group looks to refinance $1.15 billion bonds
Shares of Adani Green Energy and Adani Ports & SEZ would be in focus in Monday’s trade amid a media report that suggested Gautam Adani-led Adani group is looking to refinance $1.15 billion of overseas-listed bonds at two group firms, Adani Green Energy and Adani Ports & SEZ – via private placements.
The fresh report, quoting multiple banking sources directly aware of discussions with potential investors, has come at a time when another report, this time by PTI, suggested the group has suspended work on a Rs 34,900 crore petrochemical project in Gujarat’s Mundra.
As per ET, the group is engaged in exploratory talks with potential overseas investors, such as global insurance firms, to privately place longer-tenor bonds of up to 30-year maturities. The bonds will carry fixed coupon rates. The report suggested that the group has shortlisted two bond tranches, amounting to $500 million and $650 million, respectively, of Adani Green Energy and Adani Ports & SEZ, to begin with. The group believes there will be a reasonably good appetite for its bonds in the private market since most of the debt is backed by strong cash flows, as per the ET report.
Another report by PTI on Sunday suggested that the Gautam Adani-led group has decided not to pursue the Gujarat project, for the time being and that it has sent emails to vendors and suppliers to suspend all activities on an immediate basis. The Adani group’s flagship firm Adani Enterprises had in 2021 incorporated Mundra Petrochem, a wholly-owned subsidiary, for setting up a greenfield coal-to-PVC plant at Adani Ports and Special Economic Zone (APSEZ) land in Kutch, Gujarat.
As per PTI, the group was re-evaluating various projects being implemented in different business verticals. Based on future cashflow and finance, some of the projects are being re-evaluated for its continuation and revision in timeline, PTI suggested the group as saying.
Adani’s unit was to have a poly-vinyl-chloride (PVC) production capacity of 2,000 KTPA (kilo tonne per annum) requiring 3.1 million tonnes per annum (MTPA) of coal that was to be imported from Australia, Russia, and other countries, the news agency said.
Also read: Adani Enterprises, Adani Ports, other Adani group shares in focus today on suspension of Rs 34,900 crore Gujarat project
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