Adani Airport Holdings raises Rs 1,950 crore through biggest bond issue

India's Adani Airport Holdings has raised Rs 1,950 crore ($232.72 million) via the biggest domestic bond issue since US short-seller Hindenburg Research accused its parent group of improper use of offshore tax havens and stock manipulation.
 

The Adani Group company, which manages and develops airport infrastructure assets in the country, had invited bids from investors earlier in the day and will pay a coupon of 9.35 per cent, payable monthly for the bonds that are rated A+, three bankers said on Monday.
 

"Some large mutual funds were interested and apart from being the anchor investors, they have also taken some more stock on their books," one of the bankers said.
 

"Private banks have also been buyers," the banker added.
 

Axis Bank and Trust Investment Advisors were the arrangers for the issue.
 

SBI Equity Hybrid Fund, Aditya Birla Finance and Aditya Birla Sunlife Mutual Fund are the anchor investors and have invested Rs 285 crore, Rs 100 crore and Rs 50 crore, respectively, according to a term sheet seen by Reuters.
 

All the bankers requested anonymity as they are not authorised to talk to the media. None of the mutual funds, arrangers, nor Adani Group immediately replied to Reuters requests for comment.
 

This is the first time mutual funds have subscribed to bonds from an Adani Group company since short-seller Hindenburg Research's report in January 2023, which the group subsequently denied.
 

"The whole Hindenburg episode is now behind us and investors are keen to invest in the company's bonds again, and this is clearly visible from the aggressive rate at which the issue was sold," a second banker said.
 

"We have not seen an A+ rated company raising such a large amount from the market in recent months." The issue's proceeds will be used to repay the Airports Authority of India's investments in six airports before it bought them from the Adani Group, according to the term sheet.

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