On January 8, Adani Ports will issue bonds in order to raise Rs 500 crore

On January 8, Adani Ports will issue bonds in order to raise Rs 500 crore

On January 8, Adani Ports will issue bonds in order to raise Rs 500 crore

Two bonds totaling Rs 250 crore each would be issued by Adani Ports and the Special Economic Zone.

According to market sources, Adani Ports and the Special Economic Zone want to sell bonds next week in order to raise Rs 500 crore.

On January 8, Adani Ports is going to issue two notes totaling Rs 250 crore. The bonds have a set coupon rate of 8.70 percent for the first five years and an 8.80 percent bond for the tenth year.

Following the release of the Hindenburg Research study in January of last year, Adani Group is issuing its second round of bonds. Prior to this, in November, Adani Capital had raised Rs 100 crore.

The firm was accused of accounting fraud and stock manipulation by US short seller Hindenburg. The group's market value dropped by $150 billion as a consequence of the report, which also affected its capacity to obtain financing.

After the Supreme Court this week declined to get involved in the regulator's probe into claims made by Hindenburg Research, the group's market capitalization has slightly increased.

According to a money market specialist, Adani group firms are testing the market by issuing smaller bonds via the bond market.

India Ratings and ICRA have assigned the bond a 'AA+' rating. January 9 is the payment day, which is when the issuer and the investor exchange the bonds and money.

Interest rate

According to the corporation, the interest rate on the bonds will rise by 0.50 percent annually upon downgrading to a rating of "AA-" or any other similar rating. The interest rate will also increase by 0.25 percent for each notch decrease after that. Will. Every year.

It also said that the interest rate would be lowered by 0.25 percent annually for any improvement in the debentures' credit rating after such a downgrade.

On January 3, the Adani Ports board of directors authorized funding up to Rs 5,000 crore by issuing non-convertible debentures with a face value of Rs 1,000 apiece in one or more tranches.

The business has 13 ports and terminals around India, notably Mundra in Gujarat, which is the country's busiest port for processing containers.

The Adani group's enterprises are planning to invest Rs 7 lakh crore in infrastructure projects over the next ten years and are now soliciting capital money for these purposes.

On January 3, the Supreme Court denied petitions requesting that the Central Bureau of Investigation or a special investigation team handle the inquiry into potential securities law breaches by Adani group firms. The Securities and Exchange Board of India, the market regulator, was ordered by the court to finish the last two of the 24 investigations into the matter within three months.

The Adani firm dismissed Hindenburg's accusations of "brazen stock manipulation and accounting fraud" against the Ahmedabad-based Ports-to-Power firm in January of last year, referring to the research as "a calculated attack on India". said.

Bond issuance quickened.

December saw a five-month high for corporate bond fundraising, according to a study published by Moneycontrol on January 4. Banks and businesses issued corporate bonds of Rs 98,327 crore in December, up from Rs 98,139 crore the month before, according to capital monitoring Prime Database. market proposal. The amount of money raised by institutions this month was the most since June 2023, when they raised Rs 1.14 lakh crore.

In 2023, the amount issued was Rs 9.67 lakh crore, surpassing Rs 1 lakh crore three times. March's issuance was Rs 1.17 lakh crore, May's was Rs 1.04 lakh crore, and June's was Rs 1.14 lakh crore.

Considering the increase in the rates on government securities and the anticipation of loose monetary policy, the December yields on corporate bonds decreased by almost 10 basis points. After increasing interest rates by 250 basis points starting in May 2022, the Reserve Bank of India stopped boosting rates in April of last year.

The anticipated rate reduction by the US Federal Reserve and the influx of international investors subsequent to the inclusion of government securities in JPMorgan's Emerging Bond Index on June 28, 2024, are predicted to cause a decrease in Indian bond rates in 2024.

The US Federal Reserve maintained its benchmark interest rate at its policy meeting this month for the third time in a row and laid the groundwork for further rate reductions in 2024 and beyond.