Adani group plans to tap US bond markets to raise $1.2-1.5 billion

Any public issuance targeting US investors would require registering with the US Securities and Exchange Commission, which is also probing the group over the alleged securities fraud.
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AMIT DAVE

Adani Enterprises is preparing to tap the overseas markets again with plans to raise $1.2-1.5 billion through the public issue of US dollar denominated bonds, but it is waiting for more clarity on the status of the Foreign Corrupt Practices Act and the outcome of an indictment of top officials in the group by US law enforcement authorities last year, sources said.

“We intend to tap the overseas markets, but we are awaiting a resolution on the allegations made,” said the source. The funds raised will be for its airports business, specifically for the upcoming airport at Navi Mumbai, the first phase of which is scheduled to commence operations in June this year, according to indications given by its airport arm.

Sources said that the group was confident that a public issuance of bonds would get strong traction from US investors, a view bolstered by a recent $750 million private bond placement by an Adani group offshore promoter entity that was subscribed by leading investors including the world’s largest asset manager Blackrock. In February, the group had raised $200 million through a private bond placement for its port operations in Australia.

The group is now looking for a larger fund raise through a public bond issue, and the indications are that it could be some time in the middle of the year.

In February, US President Donald Trump had signed an executive order directing the US Department of Justice to stop prosecuting Americans who had been accused of bribing foreign officials to secure business contracts. More recently the Trump administration indicated it was rolling back enforcement of certain kinds of white-collar crimes including bribery charges.

These developments have been seen as benefiting the Adani group, which is facing bribery and securities fraud charges there. Last year group founder Gautam Adani and several other executives were charged by US law enforcement bodies with bribing officials in India to get solar power contracts for Adani Green Energy, which at that time was raising funds in the US.

Any public issuance targeting US investors would require registering with the US Securities and Exchange Commission, which is also probing the group over the alleged securities fraud.

upcoming airport

The Navi Mumbai International Airport, in which the Adani group has a 74 per cent stake, will commence operations with one terminal handling 20 million passengers annually. It will be ramped up in phases to reach a passenger-handling capacity of 90 million.

Published on April 18, 2025