Adani group offers first $409 million bond since Hindenburg crisis | Company News – Business Standard

Adani Group began marketing a $409 million bond in what would be its first dollar note sale 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 note at initial price guidance in the 7.125 per cent area, according to a person familiar with the matter, who asked not to be identified because the matter isn’t public.

Issuing the dollar security would give Adani its latest boost, after it 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. 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. 

Some of the world’s largest asset managers, including Neuberger Berman Group LLC, bought Adani dollar bonds after the unprecedented rout, according to an analysis by Bloomberg published in January. By contrast, Singapore’s state-owned investor Temasek Holdings Pte exited its position entirely, the analysis showed.

The auditor for the group’s ports business resigned last year, adding to questions about its accounting practices. Critics including opposition political parties have also continued to raise questions about a perceived closeness to Prime Minister Narendra Modi, as well as a complex web of opaque offshore firms.

Deutsche Bank AG, Barclays Plc and Standard Chartered are among the banks tapped to help with the present bond deal, a sign that major lenders are prepared to do business with the Indian billionaire.

First Published: Mar 04 2024 | 8:25 AM IST