Adani Group dollar bonds rose on Friday as Gautam Adani was said to be in talks with creditors to pay some loans up front in a bid to restore confidence in his business empire.
Securities also pared losses from early in the week as Goldman Sachs and JPMorgan told some clients that Adani’s bonds could offer value due to the strength of some assets. Goldman Sachs executives said in a phone call Thursday that Adani’s debt has reached a bottom line in the short term, according to people familiar with the matter.
All 15 of the group’s dollar debt securities rose on Friday, helped in part by news that Adani Ports & Special Economic Zone had made its coupon payments on schedule.
2031 notes sold by Adani Ports, one of those that had a February 2 payment date, rose 3.7 cents on the dollar to 67.7 cents on the day.
Adani Green Energy dollar notes due in September 2024 rose 6.8 cents on the dollar to 70.4 cents, on track for its biggest daily increase ever, according to data compiled by Bloomberg.
However, some of the conglomerate’s dollar debt is trading below 70 cents, a level usually considered distressed.
Meanwhile, Al-Adani is in talks with creditors to prepay some loans backed by pledged shares as he seeks to restore confidence in the financial health of his sprawling conglomerate. former. a report. While the official did not provide further details, the move would see the lenders release some shares that had been pledged as collateral and repayments could take place as early as this weekend, said people familiar with the matter, who asked not to be identified because the details She is special.
The people said the group, whose interests include cement, media, ports and energy, had pledged 5.5 percent of the shares of its publicly listed units in loans.
Although there is no indication that Adani Group entities will struggle to make payments on dollar debt anytime soon – and the company has set interest coverage ratios that show it has the ability to meet such obligations – the move is an attempt to restore confidence after some banks stopped accepting papers. Group finance as collateral in customer transactions.
However, prepayment by itself may not be enough to boost confidence, according to Sameer Kalra, founder of Target Investing. He said investors want “concrete plans and actions”.
“Using every rupee on the balance sheet is now critical. There are a lot of stakeholders.”
People said the Adani Group has not faced margin calls on these undertakings and is proactively seeking prepayment.