A unit of Adani Group raised about $500 million through a bond privately placed with funds managed by Apollo Global Management Inc, according to people familiar with the matter, highlighting the Indian conglomerate’s ongoing effort to tap funding outside the public dollar bond market.
A firm controlled by Gautam Adani-led Adani Energy Solutions Ltd sold the 15-year private bonds with a rupee-equivalent all-inclusive cost of about 8.5 per cent, and the company plans to use the proceeds to refinance existing dollar debt, said the people, who asked not to be identified because the information is private.
The financing underscores the financing shift for Adani, historically one of the largest Indian issuers, as it borrows to fund ambitious capital spending plans while facing elevated borrowing costs in the public dollar bond market and the overhang of advancing legal risks from the US. The group has previously said it plans to rely more heavily on the domestic market and is increasingly tapping Japanese lenders.
Indian issuers broadly have slowed dollar bond sales as a depreciating rupee has made such issuances more costly. The group plans to avoid public dollars bonds until prices recover and pending US matters are resolved, said the people.
Apollo confirmed the deal in response to a Bloomberg query. “India represents a compelling infrastructure market globally with strong economic growth and long-term demand for reliable power generation,” said Apollo Partner Jamshid Ehsani in a statement. It is working with Adani Energy “to provide flexible, long-term capital that supports the resilience and growth of its platform,” he said.
A spokesperson for Adani Group did not immediately reply to an emailed request for comment.
The conglomerate tapped Apollo in June when the group’s airport unit, Mumbai International Airport Ltd, raised around $750 million from a group of global investors. Prior to that, a group of investors including BlackRock Inc bought bonds to fund Adani’s purchase of ITD Cementation India Ltd.
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