Adani Transmission raises $310 million in foreign currency debt

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New Delhi | February 04, 2020 8:06 PM

The USD notes carries fixed coupon over the tenor of notes, it said without giving details. "These instruments have an amortising structure matching the concession period and revenue profile of the issuer companies."

Adani, Adani Transmission, Dollar Debt, foreign currency debtAnil Sardana, MD & CEO, Adani Transmission Ltd, said: “We are delighted to raise these funds from our US stakeholders.”

Adani Transmission Ltd (ATL), the largest private sector power transmission company operating in India, on Tuesday said it raised USD 310 million in foreign currency debt. “This USD denominated notes are raised by six wholly owned subsidiaries of ATL amounting to USD 310 million,” the company said in a statement. The USD notes carries fixed coupon over the tenor of notes, it said without giving details. “These instruments have an amortising structure matching the concession period and revenue profile of the issuer companies.”

“This is the first time that an Indian company has circled up transaction for its proposed US private placement in over a decade. From transmission business, this is first of its kind transaction,” the company said. ATL said the proceeds will be used to cater to the growing demands for power by expanding network especially in the deficit parts of the country.

Anil Sardana, MD & CEO, Adani Transmission Ltd, said: “We are delighted to raise these funds from our US stakeholders. This will help us mitigate interest rate risk in our TBCB (tariff-based competitive bidding) projects. Further, we aim to expand our network to meet the growing demands of a T&D sector. The funds will enable us to support efforts toward scaling infrastructure and improving electrification and bridging gap between the supply and demand for power. The placement is a strong endorsement of global investors’ confidence in ATL as a value creator and leader in the power sector contributing toward sustainable growth the country.”

Barclays and Bank of America acted as the financial advisors in securing the deal and have held roadshows for the Baa2/BBB- rated borrower over the past few months. ATL is the transmission business arm of the Adani Group, one of India’s largest business conglomerates. It is the country’s largest private transmission company with a cumulative transmission network of more than 14,800 circut kms, out of which more than 11,470 ckt kms is operational.

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