Adani Green Energy’s March-issued bond offering 6.7% dropped as much as 15 cents, trading at 78/ 79 cents on the dollar in the early trades. This saw some recovery and closed at 82/83 cents from 94 cents Wednesday
This was their steepest decline since February 2023 when Hindenburg Research accused stock manipulation, which the group had denied.
Adani Electricity Mumbai bonds fell to 82/84 cents on the dollar Thursday, down from 88 cents the previous day, as investors reacted to legal challenges facing the group.
Bonds issued by Adani Ports and Special Economic Zone (APSEZ) declined to 87 cents, compared to 93 cents Wednesday.
The selloff followed Adani Green Energy’s withdrawal of a $600 million bond issuance earlier in the day. The offering, priced between 7.45%-7.5%, was pulled after US Department of Justice and SEC investigations surfaced, sources said. The proceeds were intended to refinance existing credit lines tied to the group’s renewable energy assets.”This is a major blow to investor confidence in Adani bonds and could delay any near-term fundraising plans,” said a bond trader in Mumbai.The ripple effects hit Vedanta Resources, which was in the final stages of pricing a $500-million bond to refinance its 2028 notes. The issuance, expected to price near the bonds’ trading level of 10.2%, may now be postponed to next week amid weak sentiment, according to sources familiar with the matter.
Vedanta Resources has been looking to raise $1.2 billion through senior unsecured notes in the near term to refinance existing debt, as reported.
Vedanta was engaging with global investors on Wednesday regarding the proposed offering. The issuance could be structured as either 3.5-year or 7-year bonds, depending on market appetite. However, the bond may be delayed, said sources.
Adani Group’s latest troubles are similar to its earlier turmoil, with markets reacting sharply to legal risks and scrutiny in February 2023.
“There was some buying interest in APSEZ bonds late in the session, helping them close 5 cents lower,” said another bond trader.