“Family offices were active in the market late Wednesday and Thursday, with trades worth about $50 million reported,” said a debt market source.
Adani Ports and Special Economic Zone (APSEZ) bonds, which fell from 96 cents to 92 cents Thursday, were trading at 90-91 cents Friday evening. Adani Green Energy’s 6.7% March-issued bonds, which traded at 84/85 cents Thursday, held steady at the same levels Friday evening.
“There was activity in the Adani bond counters, with most institutional holders acting as sellers,” said a trader familiar with the matter. “Mutual funds primarily offloaded their positions, while family offices are believed to have been buyers.”
AgenciesFamily offices often operate through private banking accounts with institutions such as Barclays or Nomura, which purchase bonds on their behalf, the trader added.
“The exact details of these transactions, however, are not typically disclosed,” said a trader cited above.Adani Green Energy’s (AGEL) $600-million bond issuance, scheduled for launch Wednesday night, was scrapped after the indictment became public. The proceeds from this issue were intended to refinance $340 million in project-level loans due by March 2025 and $260 million by March 2026. The bond withdrawal raises significant refinancing risks for AGEL, CreditSights said in a report.AGEL has an additional $600 million in project loans tied to other restricted groups maturing by March 2025. The company had planned to refinance the loan through the Indian bond market. However, CreditSights said that the negative cash flow position and prolonged legal overhang could deter banks from rolling over or refinancing the debt.
Given its debt payment needs, AGEL may need to explore alternative funding avenues, including equity support from the Adani family, strategic asset sales to partners like TotalEnergies, or private credit funding, CreditSights added.