Adani Green Energy has unveiled plans to raise a substantial sum of $409 million through the issuance of U.S. dollar-denominated bonds, as disclosed in a regulatory filing on Tuesday.

This strategic move marks a significant financial manoeuvre for the company, signalling its intention to tap into international markets for capital expansion and operational endeavours.

This announcement comes on the heels of earlier reports from Reuters indicating Adani Green Energy's ambition to secure approximately $500 million through dollar bonds, slated for issuance in March.

Notably, this initiative marks the first foray into the overseas bond market by an Adani group entity in a year, signifying a pivotal moment for the conglomerate's financial strategy.

The proposed bonds are set to feature a door-to-door tenor stretching over 18 years, as the company gears up to navigate global financial landscapes.

Market dynamics will play a crucial role in determining the issuance, with the weighted average life of the bonds projected to hover around 12.7 years, indicating a calculated approach towards optimizing financial structures.

In a bid to streamline its financial obligations and optimize capital allocation, the proceeds from the bond issuance are earmarked for the refinancing of existing debt obligations.

Specifically, the funds will be utilized to retire the $500 million worth of 6.25% senior secured notes, which are due in 2024 and were initially issued on June 10, 2019, as outlined in the company's release.

To facilitate this ambitious endeavour, Adani Green Energy has enlisted a consortium of reputable financial institutions as joint book-runners.

Barclays, DBS Bank, Deutsche Bank, Emirates NBD Bank, First Abu Dhabi Bank, ING Bank, Intesa Sanpaolo, MUFG Securities Asia, SMBC Nikko Securities, Societe Generale, and Standard Chartered Bank have been appointed to orchestrate a series of fixed-income investor meetings across key markets in Asia, the Middle East, Europe, and the United States, commencing on February 28.

The proposed issuance has garnered early attention from credit rating agencies, with Fitch Ratings assigning an expected rating of 'BBB-(EXP)' with a stable outlook to Adani Green Energy Limited Restricted Group 1's (AGEL RG1) proposed 18-year fully amortizing senior secured notes due 2042, underscoring the company's creditworthiness and financial stability.

This strategic move towards international bond issuance comes against the backdrop of significant market developments, including the aftermath of a report by U.S. short-seller Hindenburg Research in January of the preceding year.

The report triggered a sell-off in stocks and overseas-listed bonds of Adani group companies, compelling them to retract from the foreign currency bond market and initiate a buyback of $315 million worth of listed overseas debt securities.

However, with the majority of the group's foreign bonds now surpassing pre-report levels, Adani Green Energy finds itself in a position of renewed confidence to explore fresh opportunities in the global bond market.

This underscores the resilience and adaptability of the conglomerate amidst challenging market conditions, reaffirming its commitment to sustainable growth and value creation for stakeholders.