Most of Adani’s bonds rose after the $2.5 billion sale of shares to the Group

Most of the dollar bonds issued by Adani group of companies gained for a second day on Wednesday after its flagship sold $2.5 billion worth of shares in a fully subscribed follow-on offering.
The 2024 note Adani Green Energy Ltd. gained nearly 5 cents on the dollar to 80.9 cents by 9:35 a.m. in Hong Kong, recovering from a drop to a record low earlier this week. Eleven of the 15 dollar-denominated bonds in the group tracked by Bloomberg were also higher.
The offering of the leading company Adani Enterprises Ltd. was the largest subsequent share sale in India and was fully subscribed on the last day. This could help ease investor concerns facing Adani following allegations of fraud by short sellers Hindenburg Study sent the group into turmoil.
The conglomerate, backed by Asia’s richest man, has also floated millions of dollars worth of shares to keep its collateral on a $1 billion loan after a sharp sell-off in shares across the business empire, according to people familiar with the matter.
Still, even after the rally, Adani Green Energy’s 2024 bond yield is still close to 20%. The group may find it difficult to navigate the bond market in the near future given governance concerns, according to a report by Bloomberg Intelligence.

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