Dollar bonds of India's Adani slide after $2.5 billion share sale scrapped
(Reuters) - Dollar bonds issued by entities of India's Adani Group extended losses on Wednesday after the conglomerate called off its $2.5 billion share sale following a rout sparked by a scathing short-seller report.
U.S. dollar-denominated bonds issued by Adani Transmission and Adani Electricity Mumbai, both maturing in 2030, tumbled more than 7 cents in the dollar, Tradeweb data showed.
Many of the bonds issued by Adani entities are now bidding below the 70 cents in the dollar mark which is seen as distressed territory.
Yields on Adani Green Energy's $500 million bonds due in 2024 rose to 15.45% on Wednesday from 12.1% on Tuesday.
Yields on $500 million bonds issued by Adani Ports and Special Economic Zone, maturing in 2027, were last seen at about 11%, up from 9.6% on Tuesday. They jumped over 60 basis points on Wednesday after the announcement that the share sale was called off.
A report by Hindenburg Research last week alleged improper use of offshore tax havens and stock manipulation by the Adani Group. The report also raised concerns about high debt levels of seven listed Adani companies and also their valuations.
(Reporting by Medha Singh and Shreyashi Sanyal in Bengaluru and Karin Strohecker in London, Davide Barbuscia in New York; Editing by Maju Samuel and Anil D'Silva)