“While a part of the proceeds will be used to refinance an existing offshore loan through bonds, the rest will be used to fund projects,” said a senior executive involved in the exercise.
These bonds are expected to offer rates in the range of 3.25-3.7percent with 10-year maturity. The bonds are marked as ‘sustainable’, and qualify for the global ESG (Environment Social Governance) cash pool, sources said.
“Digital roadshows are likely to begin soon as the bond may be launched in the next one week,” one of the persons cited told ET.
The company has extended a two-point comfort before obtaining a ‘sustainable’ tag.
promised to increase the share of renewable energy business, and will also reduce greenhouse emissions over a period of time, sources said.
Barclays, Citi, Deutsche, JP Morgan and MUFG are among investment bankers helping the company raise the bonds. Individual banks could not be contacted immediately.
In a regulatory filing late Tuesday, Adani Transmission informed stock exchanges about the outcome of its Annual General Meeting (AGM), where shareholder approval was sought to raise up to Rs 2,500 crore.
Fitch and Moody’s Investors Services ranked the proposed bonds BBB- and Baa3, the lowest ranks in the investment grade.
AEML’s credit profile, according to a Moody’s note, considers its predictable cash flow, underpinned by the mature and supportive regulatory framework in Maharashtra, solid operating track record and the quality of its diversified customer base in Mumbai.
“These credit strengths are counterbalanced by AEML’s high financial leverage due to its plans to partly fund its planned capital expenditure with debt, and its exposure to competition from other licensed distributors in its catchment areas,” it said.
Any delay in recovering accrued income during the pandemic will be recouped with interest costs on any incremental working capital borrowings, in line with regulations, Fitch said.
On May 16, ET wrote that Adani Transmission was raising up to $1.15 billion through offshore loans to fund at least four projects in Gujarat and Maharashtra.
