Adani Electricity Mumbai Limited (AEML), a subsidiary of the Adani Group, has raised $ 300 million, or about 2,232 crore, by issuing a 10-year sustainability-linked bond. Giving this information in Mumbai on Friday, the company said that it had announced a medium-term notes program of 2 billion dollars. According to Adani Electricity Mumbai Limited, it is the first company in the energy sector in India to raise funds through this route. Adani Electricity will use this fund for refinancing its existing debt and for regulatory asset development.
According to the company, its bond has been oversubscribed 9.2 times. In this, 49 percent from Asia, 27 from Europe, the Middle East and Africa and 24 percent from North America have invested in this. After this transaction, the company can enter the international market for 100% term debt. Adani Group bought this company from Anil Ambani’s Reliance Energy. The company serves one crore 20 lakh consumers in Mumbai.
S&P downgraded rating
S&P Global Ratings downgraded the rating of Adani Electricity Mumbai (AEML). The rating agency has downgraded AEML’s rating from stable to negative. AEML’s holding company Adani Transmission (ATL) is going to spend more to expand its asset base, due to which its leverage level is expected to increase in the next two years. Because of this the rating agency has downgraded the rating of AEML. The agency has maintained the credit rating of AEML as BBB negative. The S&P’s BBB rating means that economic conditions are challenging, weakening its ability to meet financial commitments. AEML is in the power distribution business in Mumbai.
S&P gave negative rating to Adani Discom, due to this the company’s outlook was downgraded
The company will spend 17 thousand crores in the next three years
The company plans to spend Rs 17,000 crore in the next three years to complete some under-construction transmission projects. As a result, S&P estimates that ATL’s leverage level (the ratio of funds from operations to debt) will fall to 7 per cent in FY22 and then to 8.2 per cent in the next fiscal year over the next two years. The company’s leverage level in the last two years has remained in the range of 8-12 per cent. Leverage is projected to increase to over 9 per cent in FY2024 on account of earnings contribution from the commissioned project.