Adani Group’s $409 Million Bond Offering Details

Business View
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Adani Group is once again in the news after the diversified organisation offered the “First Dollar Bond” in the middle of the Hindenburg Crisis. The reports regarding the million bond have been shared by multiple news websites which state that Adani Group started marketing a $409 million bond. This bond would be the first dollar note of the organisation after a report last year by short seller “Hindenburg Research”. This million-dollar bond showcases the signs of a rebound in investor confidence. Scroll down to know more:

As per an anonymous person (whose identity is not disclosed by a renowned media outlet) states regarding the matter that “The conglomerate’s solar energy unit Adani Green Energy Ltd. and associated companies are offering the 18-year bond at the starting price guidance in the 7.125% area.” Adani would receive a boost from issuing the security, which would also alleviate concerns that it would have to pay a high price to attract foreign capital due to the US short seller’s allegations, which it has refuted, causing a sharp decline in the group companies’ stock and bond prices.  

It is worth noting that, Adani bagged fresh equity backing from investors including GQG Partners LLC in 2023 and successfully recapitalised $3.5 billion worth of debt for the acquisition of cement firms which is helping its securities to recuperate. Furthermore, as per the person, Orderbooks for the new bond totalled added $1 billion as of midday in Asia on Monday.  In this regard, the head of South & Southeast Asia corporates at research firm CreditSights shared his views on this. He said, “We expect good demand for the paper”. He included in his statement that it did not appear that the loanee would “pay a premium to raise the bond.” 

What Is The Conflict Of Adani With Hinderurg?

In January 2023, Hinderburg which is a short-selling firm accused the Adani Group of false and misleading statements about its financial practice. In the reported filed, the short-selling firm accused Adani of stock manipulation. After the report was filed, the Adani Group came under fire, however, the conglomerate of Gautam Adani has repeatedly denied all the claims or accusations made by Hindenburg. It is worth noting that Adani Group’s business dealings range from solar energy and ports to airports.

What’s The View Of Bloomberg Intelligence On Adani Group’s Offer?

Sharon Chen, a credit analyst states “Adani Green’s proposed Ba1/BBB-rated restricted group bonds may not offer much spread pickup vs. the group’s existing bonds, assuming it prices inside price guidance of 7.125%. It might trade broadly in line with Ba1/BB/BBB-rated Adani Renewable’s 4.625% 2039s. 

In the earlier report of Bloomberg, The representatives of the Adani Group have already informed investors regarding the sale of a new overseas bond. This effort of the Indian conglomerate came in the wake of raising capital. This effort of the Indian conglomerate came in the wake of raising capital. The decision has been made to get a boost. It is believed that Issuing the security would give the Indian conglomerate the latest growth and further allay fears it might have to pay dearly to raise overseas capital. Apart from that, proceeds from the bond sale will be used to redeem $500 million of note developing at the end of this year. 

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