Mumbai: Overseas bonds issued by Adani Group companies fell on Monday in Asian trade as investors reassessed their positions in the aftermath of the $70-billion stock rout. Eight bond instruments of the group saw yields climb on Monday, Bloomberg reported. Bond yields and prices move in opposite directions. When yields climb, bond prices fall. & Special Economic Zone’s 2027 note dropped 6.2 cents on the dollar in Hong Kong after hitting fresh lows earlier. As many as four different bonds belonging to different companies of the Adani Group, including that of Adani Electricity Mumbai, fell to distressed levels — below 70 cents on the dollar.
Such levels generally indicate mounting concern about creditworthiness, the Bloomberg report said.
At least eight other Adani corporate bonds dropped by more than two cents on the dollar Monday in volatile trading, as the value of the company’s debt has plunged by hundreds of millions of dollars in less than a week.
Traders said the fall in the overseas bonds of the group was a reaction to the allegations of the Hindenburg Research report, which pointed out the group’s indebtedness besides making allegations of misgovernance and ‘fraud’.
“The short selling pressure has moved to bonds but one must understand that the corporate dollar bond market is very illiquid,” said Ajay Manglunia, head of investment grade group at
.
