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Adani Group’s Comeback: $409 Million Bond Sale Amidst Challenges

04 March 20243 mins read by Angel One
Adani Group begins a $409 million bond sale, marking its first since Hindenburg Research's 2023 accusations.
Adani Group’s Comeback: $409 Million Bond Sale Amidst Challenges
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Adani Group, the Indian multinational conglomerate, has initiated the marketing of a $409 million bond. This is the Group’s first dollar note sale since the Hindenburg Research report last year. It is well-known that in 2023, Hindenburg Research accused the conglomerate of fraud and stock manipulation. However, Adani Group has always denied these claims. Currently, the Group, containing diverse sectors from ports to airports and solar energy, offers an 18-year note through its solar energy unit, Adani Green Energy Ltd, and associated entities. As per a source, the initial price guidance for the bond is set in the 7.125% area.

How Will Dollar Bond Issuance Impact the Group?

After the Hindenburg Research report published last year, Adani Group companies witnessed a stock and overseas listed bond sell-off. As per a report by Reuters, this prompted the Group to withdraw from the foreign currency bond market and also repurchase $315 million of listed overseas debt securities. However, most of the Group’s foreign bonds have recovered value since then. This gave the company confidence to issue new dollar bonds.

The dollar bond issuance is followed by Adani’s latest successes, which include securing fresh equity backing from investors like GQG Partners LLC and successfully refinancing $3.5 billion of debt for cement company acquisitions. This move adds to the Group’s latest positive developments and further improves its financial standing.

Some of the largest asset managers in the world, such as Neuberger Berman Group LLC, bought Adani dollar bonds after the challenges faced by the Group last year. On the other hand, during the same period, Singapore’s Temasek Holdings Pte exited its position entirely.

However, major banks, such as Deutsche Bank AG, Standard Chartered and Barclays Plc, are actively involved in this bond deal. This showcases the lenders’ interest in engaging with the Indian billionaire’s enterprises. This activity positions Adani Group for potential financial recovery and continued resilience in the face of past controversies and market challenges.

About Adani Group

Adani Group is a diversified Group in India which comprises 10 publicly traded companies. The Group has a presence in various sectors, such as energy and utilities, transportation and logistics, incubation, airports, materials, real estate, edible oil and foods and more. Adani Group, by Gautam Adani, has created a world-class transport and utility infrastructure portfolio with a presence all over the country.

Over the years, the Indian conglomerate has positioned itself as the market leader in various businesses, such as transport logistics, energy utility, etc. Adani Enterprises Limited (AEL) is the flagship company of the Adani Group. It is one of India’s largest business organisations.

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