Adani Group launches $409 million bond sale since Hindenburg crisis

Adani Group is launching a $409 million bond sale, marking its first sale in dollars since the Hindenburg Research crisis last year. This move signals a boost in investor confidence.

The group’s solar energy arm, Adani Green Energy Ltd., and related companies are offering an 18-year note with an initial price guidance around 7.125%, as per an unnamed source.

This bond issuance comes as a positive development for Adani, following equity support from investors like GQG Partners LLC last year and the successful refinancing of $3.5 billion in debt for acquiring cement companies. Despite allegations of fraud and stock manipulation by Hindenburg in early 2023, Adani, led by billionaire Gautam Adani, has consistently denied these claims.

Major asset managers, including Neuberger Berman Group LLC, invested in Adani dollar bonds after the challenging period, as per a January analysis by Bloomberg. However, Singapore’s Temasek Holdings Pte completely exited its position.

There have been concerns about the group’s accounting practices, with the auditor for the ports business resigning last year. Critics, including opposition parties, continue to question the perceived closeness to Prime Minister Narendra Modi and the intricate network of opaque offshore firms.

Deutsche Bank AG, Barclays Plc, and Standard Chartered are among the banks involved in the current bond deal, indicating major lenders’ willingness to engage with the Indian billionaire.

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