Business
Most Adani bonds rise after the group’s $2.5 billion share sale
Most of the dollar bonds issued by Adani group of companies got a second day on Wednesday after the flagship company sold shares worth $2.5 billion in a fully subscribed follow-on offering.
2024 note to Adani Green Energy Ltd. rose nearly 5 cents on the dollar to 80.9 cents at 9:35 a.m. in Hong Kong, recovering from a decline to a record low earlier this week. Eleven of the $15-denominated bonds of the group tracked by Bloomberg were also higher.
The offer from the flagship company Adani Enterprises Ltd. was India’s largest follow-on share sale, and was fully subscribed on the last day. That could help ease investor concerns Adani faces after fraud allegations by short sellers Hindenburg Research sent the group into turmoil.
The conglomerate, backed by Asia̵[ads1]7;s richest person, has also put up millions of dollars worth of shares to maintain its collateral on a $1 billion loan after a sharp sell-off in shares across its business empire, according to people familiar with the matter.
Still, even after the rally, the yield on the 2024 Adani Green Energy bonds is still close to 20%. The group may struggle to tap the bond market in the short term, given concerns about governance, according to a report from Bloomberg Intelligence.
2024 note to Adani Green Energy Ltd. rose nearly 5 cents on the dollar to 80.9 cents at 9:35 a.m. in Hong Kong, recovering from a decline to a record low earlier this week. Eleven of the $15-denominated bonds of the group tracked by Bloomberg were also higher.
The offer from the flagship company Adani Enterprises Ltd. was India’s largest follow-on share sale, and was fully subscribed on the last day. That could help ease investor concerns Adani faces after fraud allegations by short sellers Hindenburg Research sent the group into turmoil.
The conglomerate, backed by Asia̵[ads1]7;s richest person, has also put up millions of dollars worth of shares to maintain its collateral on a $1 billion loan after a sharp sell-off in shares across its business empire, according to people familiar with the matter.
Still, even after the rally, the yield on the 2024 Adani Green Energy bonds is still close to 20%. The group may struggle to tap the bond market in the short term, given concerns about governance, according to a report from Bloomberg Intelligence.
