Four subsidiaries of India’s Adani Green Energy are planning to raise up to $1 billion through the issuance of U.S. dollar-denominated bonds, according to two merchant bankers involved in the deal.

The companies intend to issue bonds with a maturity of 20 years, commencing this month and potentially offered in one or more tranches.

The bankers, who spoke on condition of anonymity, indicated that the companies might enter the market before the end of October, depending on investor sentiment during upcoming roadshows.

Adani Green Energy has not yet responded to a request for comment from Reuters. The Adani Group made its return to the dollar bond market earlier in 2024, roughly a year after being accused by short-seller Hindenburg Research in January 2023 of misusing offshore tax havens and engaging in stock manipulation.

This controversy led to a significant $150 billion drop in the group's share prices. Despite these allegations, which the group has consistently denied, its companies have since regained much of their market value in shares and bonds.

In March, Adani Green Energy successfully raised $409 million through the issuance of 18-year bonds, attracting nearly $3 billion in bids.

Furthermore, a Bloomberg report from September indicated that the Adani Group is also in discussions to raise at least $1.5 billion through additional dollar bond sales across various companies.

The current fundraising initiative will be spearheaded by four Adani Green subsidiaries: Adani Hybrid Energy Jaisalmer One, Adani Hybrid Energy Jaisalmer Two, Adani Hybrid Energy Jaisalmer Four, and Adani Solar Energy Jaisalmer One.

The bond deal will be structured such that each unit guarantees the obligations of the others, and the covenants attached to the bond issuance will be established on an aggregate basis, as noted by Fitch Ratings.

These covenants typically include financial metrics that the company must uphold to maintain the agreed borrowing interest rates. The bonds have been rated BBB- (EXP) by Fitch and Baa3 by Moody's.

The proceeds from the bond issuance are intended to refinance the subsidiaries' existing dollar-denominated construction loans, as indicated by Fitch. None of the named Adani subsidiaries were immediately available for comment on this development.

The issuers have appointed a number of banks as joint bookrunners, including DBS Bank, Emirates NBD Bank, First Abu Dhabi Bank, Mizuho Securities (Singapore), MUFG Securities Asia's Singapore branch, SMBC Nikko Securities (Hong Kong), Société Générale, and the State Bank of India's London branch. The lead managers have not yet responded to Reuters' inquiries