Adani Enterprises to Raise Rs 1,000 crore via NCDs – ETCFO-OxBig News Network

Adani Enterprises will tap the domestic bond market to raise ₹1,000 crore through non-convertible debentures (NCDs), the flagship company of the Adani Group said on Sunday.

These debt instruments will offer an effective yield of up to 9.30% and have a maximum tenor of up to 60 months.

The issue will open for subscription from July 9 till July 22. The NCDs have been rated ‘AA-‘ with a ‘stable’ outlook by ICRA and CARE Ratings.

At least 75% of the proceeds from the fundraising will be used for prepayment or repayment of the company’s debt, with the rest to be used for general corporate purposes, the company said in a statement.

Its net external debt increased to ₹49,306 crore at the end of March, up from ₹30,966 crore a year ago, while net debt to EBITDA (earnings before interest, taxes, depreciation and amortisation) ratio went up to 2.9 times from 2.3 times during this period.

This is the second time that Adani Enterprises Ltd (AEL) is raising funds from the domestic bond market.

Last year, its maiden fundraising of ₹800 crore was subscribed on the first day itself.

“The second public issuance of NCDs by AEL, further deepens our commitment to inclusive capital markets growth and retail participation in long-term infrastructure development,” said group chief financial officer Jugeshinder Singh. “This new issuance follows the strong market response to AEL’s debut NCD offering, which witnessed capital appreciation for debt investors after a rating upgrade within six months, reflecting the group’s consistent delivery and financial robustness.”

The base size for the fundraising is ₹500 crore, with an option to raise another ₹500 crore through a green shoe option. The NCDs have a face value of ₹1,000 each, and each application will have a minimum of 10 NCDs.

Nuvama Wealth Management, Trust Investment Advisors and Tipsons Consultancy Services are the lead managers to the issue.

Join the community of 2M+ industry professionals.

Subscribe to Newsletter to get latest insights & analysis in your inbox.

<!–

–>

All about ETCFO industry right on your smartphone!

<!–

–>

<!–
Scan to download App –>

<!– –>