Adani Transmission Ltd (ATL) has circled up its US private placement transaction of USD notes to the eligible International Investors. This USD-denominated notes, amounting to USD 400 million, have been raised by six wholly-owned subsidiaries of ATL.
The first tranche of USD 310 million was secured in January 2020, followed by USD 90 million in March 2020. The USD notes carry fixed coupon over the tenor of notes. These instruments have an amortizing structure matching the concession period and revenue profile of the Issuer companies.
This is the first time that an Indian company has circled up the transaction for its proposed US private placement in over a decade. From the power transmission business, this is the first of its kind transaction, a statement by ATL said. In light of current disruptions in markets, this transaction further underscores the strength of ATL assets, as we remain committed to long-term, sustainable stakeholder value creation.
This is the first time that an Indian company has circled up the transaction for its proposed US private placement in over a decade. From the power transmission business, this is the first of its kind transaction.
The company’s strategy is to cater to the growing demands for power by expanding its network especially in channelising green energy to consumptive centers of the country. The US note placement is a fixed-rate instrument, that now fully mitigates interest rate risk for these asset companies.
Barclays and Bank of America acted as the financial advisors in securing the deal and held roadshows for the Baa2/BBB- rated borrower over the past few months.
ATL has shown strong performance over 2019 with milestones that included – five successful LOIs to build, operate and maintain transmission in Gujarat, Rajasthan and Maharashtra and a recent partnership with Qatar Investment Authority, a significant step in stimulating the company’s growth. With this recent round of placement, ATL now has a 30-year, 10-year and 17-year paper in the market.
