Indian billionaire Gautam Adani’s power company plans to raise ₹7,500 crore ($823.7 million) in the group’s biggest-ever rupee bond sale later this week, according to two merchant bankers.
Adani Power aims to raise the funds through multiple-tranche issues with two- to five-year maturities, the bankers told Reuters on Tuesday, adding that the company has invited bids on Friday.
It will pay a coupon of 8.00 per cent and 8.20 per cent on the two- and three-year bonds, and 8.30 per cent and 8.40 per cent on the four- and five-year papers. The coupon will be paid out on a quarterly basis.
Adani Power is looking to raise ₹2,860 crore through the two-year option and ₹2,690 crore through the three-year note. It expects to raise ₹675 billion rupees and ₹1,275 crore through the four- and five-year papers, respectively.
Proceeds will be used for capital expenditure, working capital purposes, repayment or prepayment of existing debt and general corporate purposes, the bankers said, requesting anonymity as they are not authorised to speak to the media.
Adani Power did not reply to a Reuters email seeking comment.
Some large mutual funds will act as anchor investors for the issue, which is expected to draw strong demand from other funds and banks, the bankers said.
The bonds are rated ‘AA’ by Crisil and India Ratings, with the coupons set to step up by 25 basis points for every notch rating downgrade.
Earlier this financial year, another group company, Adani Ports and Special Economic Zone, raised ₹5,000 crore by placing 15-year bonds directly with Life Insurance Corporation of India.