Adani Group’s move in the dollar bond market has led to amplified interest for foreign investors in the Indian utility space. Adani Electricity Mumbai Ltd (AEML) has completed the issuance of USD 1 billion 3.949 per cent bonds with an over-subscription of 5.9x.
AEML’s bond structure met the stringent standards for being considered as investment-grade by Moody’s and Fitch Ratings.
The company’s issue has manifested a new juncture of development for Indian issuers. The efforts to reach a broad range of investors through the 144A and Reg S format paid off as US accounts picking up 29 per cent of the bonds, alongside 43 per cent allocation to Asia and 28 per cent to EMEA. The transaction witnessed very strong participation from real money accounts including some very high-quality real money names, which is evident from the well-distributed investor statistics. The issuance saw strong global participation leading to final order book over USD 5.9 bn with participation from across 245 accounts. The order book at USD 5.9 bn was the largest ever for a private infrastructure transaction in India. As soon as the transaction was announced, orders flowed in quickly and the books were covered within the first hour itself, which led to the transaction seeing strong participation from high quality, blue-chip real money funds and asset managers.
