India's Adani Enterprises makes first rupee bond market foray since Hindenburg

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India's Adani Enterprises has returned to the local corporate bond market for the first time since January when a U.S.-based short-seller's scathing report sparked a rout in the group's securities, but had to pay a higher rate to raise funds.

The logo of the Adani group is seen on the facade of one of its buildings on the outskirts of Ahmedabad, India, April 13, 2021. REUTERS/Amit Dave/File Photohas returned to the local corporate bond market for the first time since January when a U.S.-based short-seller's scathing report sparked a rout in the group's securities, but had to pay a higher rate to raise funds.

At a yield of 10%, the bonds were issued at a spread of nearly 300 basis points over the comparable government bond yield. The bonds will pay interest annually as opposed to government bonds which pay a semi-annual yield. The Hindenburg report alleged improper governance practices, stock manipulation and use of tax havens by the Adani Group, which the coal-to-airports group has outrightly denied, and led to regulatory scrutiny and a sell-off across the group's listed entities.

The unrated bond issue opened and closed on Tuesday and was directly placed with investors rather than the usual practice of going through merchant bankers.

 

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