Adani Group to hold Asia fixed-income roadshow next week
THE Adani Group will hold a fixed-income investor roadshow in Asia next week as the embattled Indian conglomerate seeks to repair the damage caused by a shock short-seller report.
The group will hold a roadshow in Singapore on Feb 27, and Hong Kong on Feb 28 and Mar 1, according to a person who asked not to be identified discussing a private matter. The empire of Indian billionaire Gautam Adani is boosting outreach to investors after its bonds and stocks have slumped over the past month following a critical report from Hindenburg Research.
The Adani Group, which also held calls with bondholders earlier in February, is seeking to stem the negative fallout from the Hindenburg claims as it faces debt maturities from a number of its companies by the end of next year. Moody’s Investors Service cut the outlook on several Adani firms this month, citing concern over the impact of any big jump in funding costs.
Adani bonds were mixed Friday (Feb 24), with eight of 15 trading lower, though the moves were small by recent standards, according to data compiled by Bloomberg. The biggest decliner was an Adani Ports & Special Economic Zone note, which fell 0.3 US cents to 65.3 US cents on the dollar as of 10.43 am in Hong Kong.
The ports-to-power group has now lost about US$146 billion in market value since Jan 24, when Hindenburg published its scathing report alleging accounting fraud and stock manipulation. Adani and his companies have denied the allegations. They have also hired legal and communication teams, cut expenses and repaid debt as they seek to calm traders concerned about the group’s access to financing.
The Adani Group had tapped international bond buyers for more than US$8 billion in recent years, while also turning to global banks for at least as much in foreign-currency loans, data compiled by Bloomberg show.
Barclays, BNP Paribas, DBS Bank, Deutsche Bank, Emirates NBD Capital, ING Groep, IMI-Intesa Sanpaolo SpA, MUFG, Mizuho, SMBC Nikko and Standard Chartered Bank have extended the invitation for the roadshow to potential investors. BLOOMBERG
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