Adani Green Energy Ltd (AGEL), the renewable energy arm of the Adani group, is planning to raise $409 million through US dollar-denominated bonds to repay a debt obligation falling this year.

This will be the first overseas fund raising by the group after the Hindenburg report in January last year which led to a big slide in the conglomerate’s market cap. However, the group has recovered from its impact over the past few months.

In a regulatory filing, AGEL said the bond will have a door-to-door tenor of 18 years. AGEL added that the proceeds will be used to redeem the $500 million 6.25 per cent senior secured notes due 2024. These notes were issued on June 10, 2019.

Three subsidiaries of Adani Green Energy Twenty-three Ltd, a unit of AGEL, are the co-issuers.

AGEL has a portfolio of 20,844 MW of operational and under execution projects to produce electricity from solar energy.

Separately, Fitch Ratings said it has given the proposed bond issue an expected rating of ‘BBB-(EXP)’ with a stable outlook.

“The company plans to use the proposed US dollar notes to refinance its five-year bullet $500 million senior secured notes due 2024. The proposed notes will have security and protective structural features similar to the existing bullet notes,” the rating agency said.

The proposed notes will be issued in part by each of the three subsidiaries — Adani Green Energy (UP) Ltd, Parampujya Solar Energy Pvt Ltd and Prayatna Developer Pvt Ltd.

“The issuers directly own operating assets and are not merely lenders to the operating entities, unlike other rated issuance from most Indian restricted groups. The final
rating is contingent upon the receipt of final bond documents conforming to information already received,’’ Fitch said.

Shares of Adani Green on Tuesday ended at Rs 1979.25 on the BSE, a gain of Rs 6.65 or 0.34 per cent over the last close.