Adani Green's Unique Repayment Plan Boosts Bond Value

• Adani Green Energy reveals its strategy to repay a $750 million bond, including funds from share sales and joint-venture deals, as it aims to reduce debt and fuel growth.

Adani Green Energy Ltd., the solar-energy unit of Adani Group, has revealed its plan to repay a $750 million bond due in September. The company will use $281 million from the sale of preferential shares to the founding family, along with $300 million from a joint-venture deal with TotalEnergies SE and $169 million from various sources including a debt service reserve account. The announcement caused the Adani Green note to climb to 98 cents on the dollar from 97 cents. Adani Group's finances have been under scrutiny since being accused of fraud by US short seller Hindenburg Research last year.

In addition to the plan to repay the bond, Adani Green recently received board approval to raise up to $1.1 billion by issuing share warrants to its founders. The funds raised will be used to reduce debt and support accelerated growth. The company had previously unveiled an initial blueprint for its refinancing plan in December, but did not provide details on the equity deals it would use at the time. Adani executives have consistently denied the fraud allegations made against the conglomerate.

What is Adani Green Energy's plan to repay its $750 million bond?

• Adani Green Energy plans to repay its $750 million bond due in September.
• The company will use $281 million from the sale of preferential shares to the founding family to repay the bond.
• Adani Green will also utilize $300 million from a joint-venture deal with TotalEnergies SE to repay the bond.
• Additionally, the company will use $169 million from various sources, including a debt service reserve account, to repay the bond.
• The announcement of the repayment plan caused the Adani Green note to increase in value from 97 cents to 98 cents on the dollar.
• Adani Green recently received board approval to raise up to $1.1 billion by issuing share warrants to its founders.
• The funds raised through the share warrants will be used to reduce debt and support accelerated growth.
• In December, the company unveiled an initial blueprint for its refinancing plan, but did not provide details on the equity deals it would use at the time.
• Adani executives have consistently denied the fraud allegations made against the conglomerate by US short seller Hindenburg Research.