Adani group Electricity raised 2232 crore through bonds became India’s first company
Adani Group’s AEML has become the first energy sector company in India to raise money through bonds. Adani Electricity will use this fund for refinancing its existing debt and for regulatory asset development.
New Delhi. Adani Electricity Mumbai Limited (AEML), a part of the Adani Group, has managed to raise $ 300 million (about Rs 2,232 crore) by issuing a 10-year sustainability-linked bond. It is the first company in the energy sector to raise money through bonds in India. According to Adani Electricity Mumbai Limited, the company had announced a $2 billion medium term notes program, which has raised funds through this route.
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Bond oversubscribed by 9.2 times
A statement issued by the company said that Adani Electricity will use this fund for refinancing of its existing debt and regulatory asset development. According to the company, its bond has been oversubscribed 9.2 times. In this, 49 percent of the investors from Asia, 27 from Europe, Middle East and Africa and 24 percent from North America have invested in this. Now the company can enter the international market for 100% term debt.
S&P downgraded rating
However, S&P Global Ratings downgraded the rating of Adani Electricity Mumbai (AEML). The rating agency has downgraded AEML’s rating from stable to negative. AEML’s holding company Adani Transmission (ATL) is likely to spend more to expand its asset base, which is expected to increase its leverage level over the next two years. Due to this the rating agency has downgraded the rating of AEML. S&P has maintained AEML’s credit rating as BBB negative.
The company will spend 17 thousand crores in 3 years
Adani Group bought this company from Anil Ambani’s Reliance Energy. The company serves one crore 20 lakh consumers in Mumbai. The company plans to spend Rs 17,000 crore in the next three years to complete some under-construction transmission projects.
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