INSUBCONTINENT EXCLUSIVE:
Mumbai: Adani Mumbai Electricity Ltd (AEML), a unit of Adani Transmission that supplies power to Mumbai suburbs, has raised $1 billion
through a dollar bond sale to investors abroad
raised the funds at 230 basis points above the 10-year US treasury, which was trading around 1.63 per cent on Wednesday, resulting in a
coupon rate of 3.93 per cent
from the initial guidance of 270 basis points above the 10-year US treasury
The demand was strong despite the uncertainties in Asia due to the spread of the coronavirus and also the volatilities linked to the budget
among the banks involved in the issue.
This is the second fund raising for the $13-billion agriculture-to-energy conglomerate this week
after Adani Transmission raised $310 million through a private placement of debt in the US two days ago
least 50 to 75 basis points in its interest cost
Savings will also come from releasing immediate cash flows as unlike Indian bank-loans, these bonds do not have to be paid until maturity,
The issue is rated BBB- by Fitch citing a stable regulatory framework, revenue visibility, low counterparty risk and stable
The balance debt will be replaced by a subordinated loan, which will improve its financial profile
AEML has low counterparty risk, with direct exposure to retail customers in India's commercial hub, Mumbai
