Updated March 5th, 2024 at 08:13 IST

Adani Group's bond issue signals reentry into global markets

Adani Green Energy successfully priced a $409 million 18-year bond, backed by nearly $3 billion in investor demand.

Reported by: Business Desk
Adani Group | Image:Facebook Photo
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Adani Group in focus: Adani Group's return to the international market was marked by a notable demand for its first dollar bond since facing scrutiny from short-sellers last year.

According to banking sources familiar with the matter, Adani Green Energy successfully priced a $409 million 18-year bond, backed by nearly $3 billion in investor demand. 

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The bonds were offered at a yield of 6.7%, 42.5 basis points lower than initially proposed, indicating robust investor interest.

The tightened pricing reflects strong enthusiasm, particularly for Indian companies operating in infrastructure and renewable energy sectors, according to banking insiders. 

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With primary demand stemming from Asia, the Middle East, and Europe, Adani's successful bond issuance suggests a positive outlook for the conglomerate's access to global capital markets.

Following this favourable reception, other entities within the Adani Group may consider similar bond offerings, encouraged by the buoyant demand witnessed. 

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Despite Reuters' attempts to seek comments, Adani Group remained unavailable for immediate response.

The bond issuance marks a strategic move for Adani Green Energy, as it intends to utilise the proceeds to repay $500 million of senior unsecured notes maturing in June. 

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Despite facing allegations of improper governance practices and stock manipulation by U.S. short-seller Hindenburg Research, the Adani Group has vehemently denied these claims. 

In response to the market turbulence caused by the allegations, Adani executives and advisors initiated a proactive engagement strategy with investors globally.

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Moody's Investor Service rates the bonds as 'Ba1', while Fitch Ratings assigns a 'BBB-' rating, reflecting a degree of confidence in Adani Group's creditworthiness amidst the bond market comeback.

(With Reuters Inputs)

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Published March 5th, 2024 at 08:13 IST