India’s Adani Group unit raises 19.5 billion rupees via bond issue, say bankers

Adani Group constructing. File
| Picture Credit score: Vijay Soneji

India’s Adani Airport Holdings has raised ₹19.5 billion ($232.72 million) through the most important home bond concern since U.S. short-seller Hindenburg Analysis accused its father or mother group of improper use of offshore tax havens and inventory manipulation.

The Adani Group firm, which manages and develops airport infrastructure property within the nation, had invited bids from buyers earlier within the day and can pay a coupon of 9.35%, payable month-to-month for the bonds which are rated A+, three bankers mentioned on Monday (September 30, 2024).

“Some giant mutual funds have been and other than being the anchor buyers, they’ve additionally taken some extra inventory on their books,” one of many bankers mentioned. “Personal banks have additionally been consumers,” the banker added.

Axis Financial institution and Belief Funding Advisors have been the arrangers for the difficulty.

SBI Fairness Hybrid Fund, Aditya Birla Finance and Aditya Birla Sunlife Mutual Fund are the anchor buyers and have invested ₹2.85 billion, ₹1 billion and ₹500 million, respectively, in keeping with a time period sheet seen by Reuters.

All of the bankers requested anonymity as they aren’t authorised to speak to the media. Not one of the mutual funds, arrangers, nor Adani Group instantly replied to Reuters requests for remark.

That is the primary time mutual funds have subscribed to bonds from an Adani Group firm since short-seller Hindenburg Analysis’s report in January 2023, which the group subsequently denied.

“The entire Hindenburg episode is now behind us and buyers are eager to spend money on the corporate’s bonds once more, and that is clearly seen from the aggressive price at which the difficulty was bought,” a second banker mentioned.

“We have now not seen an A+ rated firm elevating such a big quantity from the market in current months.”

The problem’s proceeds can be used to repay the Airports Authority of India’s investments in six airports earlier than it purchased them from the Adani Group, in keeping with the time period sheet.