Mumbai: Adani Transmission Step-One Limited (ATSOL), a wholly-owned subsidiary of listed Adani Energy Solutions Limited, has raised $500 million through dollar-denominated bonds privately placed with Apollo Global Management, according to two people in the know. A spokesperson for Apollo Global subsequently confirmed the transaction in an email to Mint.
The capital will be used to refinance $500 million of ATSOL bonds that are maturing in early August. ATSOL had issued these bonds in 2016 with a 4% coupon, according to data from Bloomberg.
In January, ATSOL’s senior secured bond ratings of Baa3 was affirmed by Moody’s and its outlook was changed to stable from negative. This rating is in line with the American credit evaluator’s India’s sovereign rating and is the lowest tier in the investment grade.
“The affirmation of ATSOL’s senior secured bond ratings reflects the company’s close credit links with its wholly-owned parent Adani Energy Solutions Limited (AESL) because of AESL’s guarantee on the rated bonds and the event of default provisions linked to AESL’s insolvency,” the rating agency said in a note dated 15 January. “AESL’s credit profile in turn reflects its diversified portfolio of quality transmission and distribution assets, which benefit from supportive regulatory regimes or long-term contracts with fixed tariffs,” it added. The stable outlook, meanwhile, is due to AESL’s continued stable operating performance, Moody’s said.
Apollo Global partner Jamshid Ehsani said in a statement issued on Wednesday evening, “India represents a compelling infrastructure market globally with strong economic growth and long-term demand for reliable power generation. We are proud to work with Adani Energy Solutions to provide flexible, long-term capital that supports the resilience and growth of its platform.”
The Adani Group did not respond immediately to Mint’s request for comment.
Huge capex
AESL’s net debt stood at ₹36,113 crore as of September 2025. It did not disclose its net debt as of 31 December in its latest earnings presentation.
The company is in the midst of an extensive capital expenditure (capex) cycle, having invested ₹9,294 crore during the first nine months of FY26, 25% more than in the same period last year. While a bulk of this capex ( ₹5,459 crore) went into setting up power transmission lines, investments in installing smart meters tripled to ₹2,620 crore.
The company’s capex on transmission lines could average between ₹18,000-20,000 crore a year over the next five years as it executes two high-voltage direct current (HVDC) transmission projects in Rajasthan and Uttar Pradesh, Kandarp Patel, the company’s chief executive officer, said in an investor call on 23 January.
AESL, which was earlier called Adani Transmission Limited, was carved out of Adani Power Limited a decade ago. It is the largest private-sector power transmission and distribution company in India with high-voltage power lines across 16 states.
The company’s stock was trading at ₹998.8 as of 12:30 pm on Wednesday, having shed more than 4% since the start of 2026. The Sensex is down nearly 10% over this period owing to net selling by foreign investors amid global uncertainty.
