Adani launches $409 million bond sale
The Adani group began marketing a $409 million bond in what would be its first dollar note after a report last year by short seller Hindenburg Research, adding to signs of a rebound in investor confidence.
The conglomerate’s solar energy unit Adani Green Energy Ltd and associated firms are offering the 18-year bond at initial price guidance in the 7.125% area, according to a person familiar with the matter, who asked not to be identified because the matter isn’t public.
Issuing the security would give Adani its latest boost and further allay fears it might have to pay dearly to raise overseas capital after the US short seller’s claims — which it has denied—triggered a rout in the stock and bond prices of group firms.
Adani won fresh equity backing from investors including GQG Partners
Llc last year and successfully refinanced $3.5 billion worth of debt for the acquisition of cement companies, helping its securities to recover.
Order books for the new bond totalled more than $1 billion as of midday in Asia on Monday, according to the person.
“We expect good demand for the paper,” said Lakshmanan R., head of South and Southeast Asia corporates at research firm CreditSights.
It did not appear that the borrower would “have to pay a premium.” Nomura Holdings Inc. analyst Eric Liu sees fair value for the new bonds at about 6.825%.
Hindenburg levied accusations of fraud and stock manipulation in a report in early 2023.
Billionaire Gautam Adani’s conglomerate, whose business dealings range from ports to airports and solar energy, has repeatedly denied the claims.
Adani Green’s proposed Ba1/BBB- rated restricted group bonds may not offer much spread pickup versus 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.
Proceeds from the bond sale will be used to redeem $500 million of notes maturing in December.
Adani Green Energy and associated firms are offering the bond at initial price guidance in the 7.125% area