US dollar-denominated bonds of some Adani Group companies remained at difficult levels on Thursday, although a marginal weakening in yields on some bond offerings in early deals could signal a change in sentiment. But it’s too soon to tell.
Bonds had slumped over the past week and also earlier this week before bouncing back as Adani Enterprises managed to get its ₹20,000 crore follow-on share sale fully subscribed with the help of high net worth investors. On Wednesday, after the market celebrated the Pocket-friendly Budget presented by the Finance Minister, the promoter of the Adani group dropped a bombshell saying that they had decided to remove the FPO and return the money to the investors.
While it was a bloodbath on the domestic stock markets with more than $100 billion of the company’s value wiped out, its overseas bond trading fell to distressing levels. There were reports that Credit Suisse Group and Citigroup entities had stopped accepting securities from Adani’s companies as collateral for loans.
Bloomberg bond data showed that an Adani Green bond due October 2024 showed a marginal increase as did a bond issued by Adani Ports due 2031. However, the Adani Green bond had an offer price of 65 cents on the dollar, while Adani Transmission bonds due 2026 remained negative.
Adani Green could have a hard time refinancing that bond, market sources said.
In the immediate aftermath of the Hindenberg Research revelations, prices of bonds issued by Adani Group companies fell between 9.6 and 15.4 percent.
Reports have suggested that the group’s companies will rack up $34.7 million in coupon redemptions this week on their dollar bonds.
Adani Ports is responsible for paying $24.7 million in interest on three bonds, while Adani Transmission has a coupon payment of $10 million.
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