Adani Group’s Long-Term Bonds Captivate Institutional Investors
The Adani Group’s strategic initiative to tap into long-term corporate bonds has garnered significant interest from major investors, including mutual funds, insurers, and banks. Over the past year, Adani has successfully raised approximately ₹13,750 crore across five companies, representing more than 10% of total corporate bond issuances in India.
Key Highlights:
– Robust Fundraising: Adani has conducted 10 bond issuances in the domestic market within the last 12 months, featuring maturities of up to 19 years.
– Institutional Interest: Major investors such as LIC, ICICI Prudential AMC, Nippon AMC, SBI MF, HDFC Bank, and Axis Bank have shown strong interest in Adani’s long-duration bonds.
– Recent Issuances: In a recent move, Adani Transmission’s subsidiary, ATSTL, issued ₹995 crore worth of 17-year bonds, attracting demand from significant funds including Nippon MF and IIFCL.
– Healthy Credit Ratings: Following a series of domestic rating upgrades, various Adani companies now boast AAA or AA+ ratings, allowing access to the rupee bond market at competitive rates.
Investment Appeal for Long-Term Bonds
– Ideal for Long-Term Liabilities: Insurers and pension funds are particularly drawn to long-term bonds, aligning with their investment strategies.
– High Demand: With India’s insurance sector managing assets worth about ₹64 lakh crore and mutual funds managing ₹74 lakh crore, the push for high-rated, long-duration instruments is robust. Notably, LIC invested ₹5,000 crore in Adani Ports’ 7.75% coupon bonds, showcasing the investment community’s appetite for Adani’s long-term offerings.
Future Prospects
As the Adani Group navigates this growing interest, it continues to explore additional funding opportunities. The Group has also introduced retail bonds, raising ₹800 crore and ₹1,000 crore in 2024 and 2025, respectively.
In summary, the Adani Group’s long-term bonds represent a compelling opportunity for institutional investors, demonstrating the group’s capability to secure substantial funds through well-rated issuances. As this segment continues to flourish, it reinforces the Group’s position within the corporate bond landscape, making Adani a key player to watch in the future.