Entities in the Adani group will on Thursday make fixed coupon payments on outstanding US dollar-denominated bonds, a bondholder and a source with direct knowledge of the Indian conglomerate’s strategy told Reuters.
The payment came as Adani Group, led by Indian billionaire Gautam Adani, battled its shares in India and a loss in its US bonds last week following a critical report on its business practices by US short-seller Hindenburg Research. .
Adani Ports and Special Economic Zone Ltd paid the coupon, both the sources said on condition of anonymity. Adani Transmission also processed the bond payment on Thursday, said a source with knowledge of the firm’s strategy.
The same source said the Adani group plans to issue a credit report by Friday, which will address the concerns raised by the Hindenburg report about its liquidity.
Adani Group did not respond to a request for comment.
Reuters calculations show interest payments of about $24 million were due on February 2 on three bonds issued by Adani Ports and the Special Economic Zone, due to mature in 2031, 2032 and 2041.
Brokerage CLSA in a January 26 report estimated the consolidated debt of the top five Adani group companies – Adani Enterprises, Adani Ports, Adani Power, Adani Green and Adani Transmission, with some element of double counting – at INR 2.1 trillion. was ($25.60 billion).
The CLSA note said bank credit constituted just 38% of total credit, while “bonds/CPs (commercial papers) constitute 37%”.
Adani’s wealth has grown rapidly in recent years, but is jumped up Just a week after US-based Hindenburg published its important research report on 24 January.
Though Adani has said that it has always complied with all disclosures, the consequences have come Knocked $100 billion from the market capitalization of the group’s seven Indian-listed stocks.
The conglomerate’s dollar bonds slid further on Thursday, a day after its flagship Adani Enterprises Ltd closed a $2.5 billion share sale in one fell swoop.
Adani Green’s bond maturing in September 2024 fell 11.69 cents to 60.56 cents in losses, its lowest since issuance.
US dollar-denominated bonds of Adani Ports and Special Economic Zone, Adani Transmission and Adani Electricity Mumbai were also trading lower.
Adani “will release a detailed credit report by tomorrow evening, which will address the issues which are (a) no liquidity (issue), no cash (issue), no other issue from a credit point of view,” Adani Group with source Where is the direct knowledge of the thinking of.
The source said the coupon payments for the bonds “will continue as normal”, adding that this has nothing to do with the fall in the share price or the current challenges of the group.
The text of this story is published from a wire agency feed without any modification. Only the headline has been changed.
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