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Latham Advises on Adani Electricity’s Maiden US$300 Million Sustainability-Linked Bond Issuance

July 28, 2021
First Sustainability-Linked issuance from an Indian utility under new US$2 billion GMTN Program.

A Singapore based deal team advised the Arranger and Dealer on the establishment of Adani Electricity Mumbai Limited’s (AEML) US$2 billion Global Medium Term Note (GMTN) Program, and the joint Lead Managers on AEML’s maiden US$300 million sustainability-linked bond issuance thereunder. This is the first sustainability-linked bond issuance from an Indian utility and the first ever GMTN program by an energy utility player in India.

AEML is one of India’s largest integrated utilities and part of the Adani Group. Latham has advised the Adani Group on over US$12 billion in financings to date.

The GMTN was listed on the Global Securities Market platform of India International Exchange's debt listing platform and the Singapore Exchange Securities Trading Limited. The issue was oversubscribed 9.2 times and the funds raised will be utilized for refinancing of AEML’s outstanding external commercial borrowings (ECB) facility, and the balance for capital expenditure and general corporate purposes. The bond issuance also marks the commencement of the second phase in AEML’s Capital Management Plan, with 100 per cent of the term debt being placed in the international capital markets with the overall maturity now increased to nine years.

The Arranger and Dealer for the GMTN Program was Standard Chartered Bank, and the Joint Lead Managers to the transaction were Axis Bank, Barclays, Citigroup, DBS Bank, Deutsche Bank, Emirates NBD Capital, JP Morgan, Mizuho Securities, MUFG, and Standard Chartered Bank.

The main deal team was led by Singapore partner Rajiv Gupta and associate Ming Wei Loo. US tax advice was provided by New York partner Elena Romanova with associate Ted Gkoo, and London based partners Manoj Tulsiani, James Inness and Sean Finn advised on English law/English tax matters.

About Adani Electricity Mumbai Limited:

AEML is a 100% subsidiary of Adani Transmission Ltd formed post acquisition of Reliance Infrastructure Limited's integrated Generation, Transmission and Distribution utilities powering Mumbai city. The Adani Group is a globally integrated infrastructure player with business spanning across key industry verticals of resources, logistics, energy and agro.

About Latham’s India Practice:

With over 20 years of experience advising on Indian debt and equity capital markets transactions, Latham has one of the largest and most active India practices among international law firms. The multi-award winning practice comprises more than 50 lawyers globally, and the team have advised on India-related matters with a combined value in excess of US$80 billion since 2018.

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