Adani Green Bonds Attract Top Investors Despite Concerns

Mar 28, 2024 11:45 AM ET
  • Adani Green Energy's $409 million green bond sale attracts investors despite environmental concerns, securing cheaper terms for the conglomerate's first debt offering since a damaging report last year.

Adani Green Energy Ltd. recently sold $409 million in green bonds, with buyers including Robeco and Lombard Odier, despite concerns about the wider Adani group's environmental record. This was the conglomerate's first debt sale since a damaging short-seller report last year. The strong demand for the 18-year bond allowed Adani to secure cheaper terms, with proceeds used to redeem a $500 million green note maturing in December.

While Adani Green has emerged as an appealing investment for those focused on renewable energy, some green finance watchdogs have warned about a lack of alignment with sustainability targets across the Adani group. The recent bond sale closed just before US prosecutors widened a bribery probe into Adani group companies, although the group has denied the potential allegations. Some investors, like Abrdn plc, passed on the deal, citing market conditions, return potential, and ESG credentials as factors in their investment decisions.

Is Adani Green Energy's green bond sale a risky investment choice?

  • Adani Green Energy Ltd. recently sold $409 million in green bonds, with buyers including Robeco and Lombard Odier
  • The bond sale allowed Adani to secure cheaper terms and redeem a $500 million green note maturing in December
  • Some green finance watchdogs have warned about a lack of alignment with sustainability targets across the wider Adani group
  • US prosecutors recently widened a bribery probe into Adani group companies, although the group has denied potential allegations
  • Some investors, like Abrdn plc, passed on the deal citing market conditions, return potential, and ESG credentials as factors in their investment decisions
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Source:
bloomberg.com

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