Adani Airport Holding secures Rs 1,950 crore through bond issue: Report

Adani Airport Holdings, a subsidiary of the Adani Group , has successfully raised Rs 1.950 crore through a domestic bond issue, marking the largest bond issuance since the U.S.-based short-seller Hindenburg Research levied accusations against its parent company. The allegations, which centered on the improper use of offshore tax havens and stock manipulation, were strongly denied by the Adani Group earlier this year.

The airport infrastructure developer invited bids from investors for its A+ rated bonds, which will carry a 9.35 per cent monthly coupon, news agency Reuters reported, quoting three bankers involved in the transaction.

"Some large mutual funds expressed strong interest and, in addition to serving as anchor investors, they also increased their stock holdings," one banker revealed.

Prominent private banks also participated in the bond issuance, reflecting renewed investor confidence in the Adani Group post-Hindenburg. Axis Bank and Trust Investment Advisors acted as the arrangers for the bond sale.

Anchor investors included SBI Equity Hybrid Fund, Aditya Birla Finance, and Aditya Birla Sunlife Mutual Fund, contributing Rs 285 crore, Rs 100 crore, and Rs 50 crore, respectively, according to a term sheet viewed by Reuters.

This is the first time since the Hindenburg report was released in January 2023 that mutual funds have shown significant interest in Adani Group bonds. The Adani Group had strongly denied the report’s claims at the time.

"The Hindenburg episode is now behind us, and investors are eager to invest in Adani bonds again," said a second banker. "This is evident from the rapid and aggressive rate at which the issue was sold."

The banker further stressed that the market has not seen an A+ rated company raise such a substantial sum in recent months.

The proceeds from the bond issue will be used to repay the Airports Authority of India's investments in six airports that were later acquired by Adani Group , according to the term sheet.

As of the time of reporting, Adani Group , the mutual funds, and the arrangers have not responded to requests for comment.