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Most Adani bonds rally after Group’s $2.5 billion share sale –

Most of the dollar bonds issued by the Adani group of companies gained for a second day Wednesday after its flagship sold $2.5 billion worth of shares in a fully subscribed follow-on offering.
The 2024 note of Adani Green Energy Ltd. gained nearly 5 cents on a dollar to 80.9 cents as of 9:35 a.m. in Hong Kong, recovering from a slump to a record low earlier this week. Eleven out of 15 dollar-denominated bonds by the group tracked by Bloomberg were also higher.
The offering by flagship company Adani Enterprises Ltd. was India’s largest follow-on share sale, and was fully subscribed on the final day. It may help ease investor concerns faced by Adani after fraud allegations from short seller Hindenburg Research sent the group into turmoil.
The conglomerate, backed by Asian’s richest person, have also put up millions of dollars worth of shares to maintain its collateral cover on a $1 billion loan after a steep selloff in shares across the business empire, according to people familiar with the matter.
Still, even after the rally, the yield on the 2024 Adani Green Energy bonds is still close to 20%. The group may struggle to tap the bond market in the near term, given concerns about governance, according to a report by Bloomberg Intelligence.