The Adani group has deferred a $1.2-billion bond issue on account of weak market conditions. The proposed issue will be undertaken after the US presidential elections in November.

Subsidiaries of Adani Green Energy Ltd (AGEL) were to offer a 20-year green note on Tuesday but they were postponed.

A Reuters report said that while the group was looking to offer an yield of 7 per cent on the US dollar denominated bonds, some investors were seeking a higher yield.

The higher yield was being sought due to uncertainty over US Presidential elections amid apprehensions that domestic political risks could affect the issuers repayment ability, the report claimed.

Sources close to the group said that while it had received good response to the issue, they were deferred to achieve a much tighter pricing.

They added that some uncertain developments in connection with the US elections have led to the deferment.

The company is also waiting for better market conditions which could see the float happening after the US elections or in January 2025 after the New Year break.

Earlier this month, Moody's Ratings had assigned Baa3 rating on the $1.2 billion senior secured notes.

"The Baa3 rating on the US dollar notes reflects the collective credit quality of the restricted subsidiaries, which in turn is supported by predictable revenues from a portfolio of projects operating under long-term power purchase agreements with central government-linked utilities and Adani Electricity Mumbai Limited (Baa3, stable)," Moody's said.

Adani Group returned to the dollar bond market earlier in 2024, about a year after Hindenburg Research accused it in January 2023 of improper use of offshore tax havens and stock manipulation that sparked a rout in shares of the group's companies.