Adani Transmission aims to raise $500 million via dollar bonds for refinancing

MUMBAI: Adani Transmission aims to raise upto $ 500 million (around Rs 3,500 crore) through issue of foreign currency bonds to refinance its debt, the company said Thursday.

The company informed the bourses that US Dollar denominated bonds may be issued through private placement in one or more tranches overseas, and that these bonds may be listed in any one or more stock exchanges in India or overseas.

“We are considering the external borrowing for refinancing our existing external debt and masala bonds,” Chief Executive Officer Anil Sardana said.

Separately, the company’s board also approved buyback of existing non-convertible debentures (NCDs) and INR bonds (Masala Bond) totalling Rs 2,290 crore.

The company will launch the roadshows for the issue on Friday and aims to declare the pricing by Nov 14.

The company reported consolidated net profit of Rs 230 crore in the second quarter of 2019-20 as against Rs 90 crore in the same quarter in the previous year, driven by the electricity distribution business and the seven new transmission projects it commissioned in FY19. The company has a cumulative transmission network of more than 14,738 circuit kilometres, out of which more than 11,477 circuit kms is operational while the balance is under various stages of construction. The company’s total income was Rs 2,638.32 crore in the quarter ended September as against Rs 1,462.56 crore a year ago.

“After we acquired the Mumbai electricity distribution business, we had a spike in the debt to EBIDTA ratio, we are now back to 4.3 which is less than the internal target that the management had,” Sardana said. He added that while this gave the company headroom to leverage more, it did not plan to do so and maintain the ratio below 4.5.

Sardana said that the company has orders worth over Rs 8,000 crore in hand, which gives revenue visibility for fiscal FY20 as well as FY21.

He said that the company is optimistic about bagging more orders as states and centre award more transmission projects, particularly for the green corridor.

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