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 India's Adani Green Energy cancelled its plan to raise funds via U.S. dollar-denominated bonds after investors placed bids at higher yields than the company was willing to pay, two bankers directly involved in the deal said late on Tuesday.

The initial guidance set out to offer a yield of 7% for the 20-year maturity, according to one of the bankers.

"Some investors were demanding a higher yield, with which the company was not comfortable and hence they decided to call off the deal," the banker said.

Adani Green Energy did not respond to an email sent by Reuters outside regular India business hours.

Investors were seeking higher yields due to broader market uncertainty related to the U.S. presidential elections and domestic political risks which could impact the bond issuers' repayment ability, the second banker said.

The bankers declined to be identified as they were not authorised to speak to the media.

The Adani Group returned to the dollar bond market earlier in 2024, about a year after it was accused by short-seller Hindenburg Research in January 2023 of improper use of offshore tax havens and stock manipulation that sparked a $150 billion rout in shares of the group's companies.

In March, Adani Green Energy raised $409 million via 18-year bonds after receiving bids of nearly $3 billion.

The latest bond issue was led by Adani Green units - Adani Hybrid Energy Jaisalmer One, Adani Hybrid Energy Jaisalmer Two, Adani Hybrid Energy Jaisalmer Four and Adani Solar Energy Jaisalmer One - through a structured bond deal.

Emails sent to the four subsidiaries outside regular business hours were not immediately answered.

Each unit was supposed to guarantee the obligations of the others, while covenants attached to the bond issue will be set on an aggregate basis, according to a note by Fitch Ratings.

Covenants are terms and conditions attached to the bond, typically financial metrics the company must maintain to retain the borrowing at the agreed rate of interest.

The proceeds would have been used to refinance the subsidiaries' existing dollar-denominated construction loans, Fitch Ratings has said.