Adani Transmission Secures $310 Million

“This fundraising is purely to move away from short tenure domestic debt to long tenure global infrastructure paper. This transaction re-introduces private debt investors into India’s infrastructure sector as they have stayed away for over a decade,” an executive involved with the transaction told

February 04, 2020. By News Bureau

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Adani Transmission has announced that it has secures $310 million through private placement of debt in the US to refinance present borrowings, sources aware of the fund raising told.

According to sources close to the transaction, global investors such as Barings, Cigna, HSBC Global Asset Management and MetLife have bought the 30-year amortizing debt. Covenants include the requirement of a debt service coverage ratio, cash trap, and comprehensive compliance certificates every six months

“This fundraising is purely to move away from short tenure domestic debt to long tenure global infrastructure paper. This transaction re-introduces private debt investors into India’s infrastructure sector as they have stayed away for over a decade,” an executive involved with the transaction told .

Adani Transmission had total outstanding debt of Rs 19,000 crore as on September 30. Between FY16 and the first half of FY20, the company’s net debt to operating income ratio has marginally increased to 4.3 from 4.2, but the company has been able to change its debt profile to extend maturity in order to improve returns and lower the refinancing risk.

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