Adani bonds worth USD 1 billion find buyers, says Report

A number of international special situation funds, notably high-yield and distressed-debt specialists, bought sizeable amounts of foreign currency bonds from Adani Group firms in the days after the release of the Hindenburg report on January 24.

According to sources, the bonds held by these funds now total around $1 billion. US hedge funds Baupost Group and Silver Point Capital are among the companies that have invested, and the majority of the buying has taken place in Special Economic Zones. The bonds owned by these funds have a variety of maturities.

They also include the special circumstance funds managed by Oaktree Capital, SSG Capital, Broad Peak Capital, and Varde Partners, as per  ET sources.

One of the sources stated that the majority of transactions have already occurred and the supply has drastically diminished while pointing out that large bond houses have been the primary sellers because they withdrew when the yield increased. These deals are essentially pre-negotiated because such bonds usually have poor liquidity in normal business operations, but investors with higher risk tolerance can clearly identify a trade, the ET source added.

According to a previous report, Standard Chartered no longer recognises bonds issued by Adani Group entities as security for margin loans. The lender reportedly advised its private clients to increase their collateral if needed.

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