Adani Group’s chief financial officer (CFO) Jugeshinder Robbie Singh on Thursday emphasised the significance of developing a country’s infrastructure and energy sectors with domestic capital rather than relying on global funds.
“The core infrastructure and energy of any country has to develop with the capital of that country. It is not appropriate to rely on global capital to build infra and energy,” Singh told reporters here.
He also highlighted the need for local ownership of infrastructure and energy assets. “The benefit of our infra and energy assets must be owned in majority by the local people. The wealth effect of infrastructure and energy must remain in the majority with the Indian public. And so right across the capital chain, we will introduce products and continue to enhance these so that the Indian public can participate in a meaningful way,” Singh said.
He was speaking at an event held to announce the launch of Adani Enterprises’ (AEL) maiden public bond issue. To be opened for investors on September 4, the issuance will be of secured, rated, listed redeemable non-convertible debentures (NCDs) with an effective yield of up to 9.90% per annum. It will include up to 8 million NCDs with a face value of rs 1,000 each. The base size of the issue is Rs 400 crore, with an option of over-subscription of up to an additional Rs 400 crore. The issue is to close on September 17, with an option for early closure or extension.
Singh said the Adani Group is one of the few large corporations that engages with domestic investors regularly. “In the next 25 years, India will add value equivalent to the size of the US economy. This means that India will create a similar value that the US has created in 200 years. This is the reason that we want to develop the domestic capital market.
“Additionally, an important part of our capital management planning for the upcoming 10-15 years depends on the domestic market only,” Singh said.
“I think that the wealth creation that is being done in India must include the participation of the Indian retail investors as well. This public debt issuance is a small start in that direction. The development of this market will allow individuals to participate in the public debt securities with higher returns,” he added.
Singh also stressed the need for the development of domestic debt capital. “As of now, India’s financial assets are not fully monetised. Currently, India holds non-monetised assets worth around three times of our GDP. This is the reason that we need to provide a monetisation infrastructure to fully monetise the financial assets that are not monetised,” Singh added.
On Thursday, AEL shares closed 0.20% down at Rs 3,022 on the NSE.
With ANI inputs.
From: financialexpress
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