Adani Made Scheduled U.S Bond Payments, To Release Credit Report Friday

According to a bondholder and a person with firsthand knowledge of the Indian conglomerate's business strategy, Adani Group businesses paid their regular coupon payments on outstanding U.S. dollar-denominated notes on Thursday. The payments were made while the billionaire Indian Gautam Adani's Adani Group, which was the subject of a damning study last week by American short-seller Hindenburg Research on its business practises, struggles with a collapse in its Indian stock market and a sell-off in its U.S. bonds. The two individuals, who spoke on the condition of anonymity, said that Adani Ports and Special Economic Zone Limited paid coupons. According to the individual familiar with the company's business plan, Adani Transmission also handled bond payments on Thursday. Adani Group intends to release a credit report on Friday that will address worries about its liquidity highlighted by the Hindenburg report.said the same source. In response to a request for comment, the Adani Group remained silent. According to estimates by Reuters, three bonds issued by Adani Ports and the Special Economic Zone with maturities in 2031, 2032, and 2041, respectively, each had an interest payment due on February 2 totalling around $24 million. The top five Adani Group firms' combined debt was assessed by CLSA to be 2.1 trillion Indian rupees ($25.60 billion) in a study released on January 26. According to the CLSA statement, "bonds and CP" (commercial paper) make up 37% of the overall debt, with bank debt making up merely 38%. After U.S.-based Hindenburg issued its negative study report on January 24 and only one week later, Adani's wealth, which had been quickly increasing in previous years, had plummeted.

Despite Adani's claims that it always complies with disclosure requirements, the consequences have reduced the market value of the group's seven Indian-listed equities by $100 billion. Following the unexpected cancellation of a $2.5 billion share offering by the group's flagship firm, Adani Enterprises Ltd., dollar bonds issued by the conglomerate plummeted even further on Thursday. Bonds issued by Adani Green that mature in September 2024 suffered the worst losses, dropping 11.69 cents to 60.56 cents, their lowest price ever. Bonds issued by Adani Transmission, Adani Electricity Mumbai, and Adani Ports and Special Economic Zone were all trading at lower prices. By tomorrow evening's close of business, Adani "will provide a full credit report that will address the problems that, from a credit point of view, there is no liquidity issue, no cash flow". The insider with firsthand knowledge of the Adani group's thinking claimed there was just one concern, and no other issue. The insider stated that coupon payments for bonds will "continue as usual" and had nothing to do with the group's recent difficulties or falling share prices.