Adani bond prices decline as projects come under scrutiny and downgrades hit

Adani Group’s dollar-denominated bond prices have fallen over 6% on Tuesday as multiple projects within the conglomerate came under scrutiny and credit rating agencies downgraded its marquee stocks after the US authorities framed Gautam Adani and other executives of the group in a $265 million bribery case.

Among the most affected are Adani Green Energy’s bonds (ADGREG), which are due to mature in 2042, registering a decline of 0.64%. Similarly, Adani Transmission Step-One Ltd’s bonds (ADTIN) have seen a steeper drop of 2.57%, with a maturity date in 2026.

Bonds from Adani Renewable Energy RJ Ltd (ARENRJ), maturing in 2039, have been hit even harder, with a 6.12% decline. These bonds offer a yield of 4.625%, but the combination of downgrades and investor concerns about long-term project sustainability has led to sharp sell-offs in the renewable energy sector.

The underperformance also extends to Adani International Container Terminal Pvt Ltd (ADINCO), whose bonds saw a decline of 1.71%. Scheduled to mature in 2031, these bonds are rated BBB-, and their price drop reflects growing unease about Adani’s infrastructure investments and their ability to service growing debt obligations.

Context

AP government paused Adani Group-linked power project

Reuters had earlier reported citing government sources that Andhra Pradesh might put its power purchase deal linked to the Adani Group ‘in abeyance citing the US indictment’ of the group’s founder Gautam Adani in a bribery case.

Ratings action by S&P, Moody’s and Fitch

In the wake of this, rating agencies S&P, Moody’s and Fitch have taken strict ratings action on Adani subsidiaries. While S&P cut its outlook on Adani Ports, Adani Electricity and a unit of Adani Green Energy, Moody’s has revised the outlook on seven Adani Group companies to negative. Meanwhile, Fitch ratings agency has put put Adani Ports’ long-term foreign currency rating and its US dollar senior unsecured bonds on negative watch.

The series of downgrades and rising scrutiny over Adani’s projects, particularly in the wake of regulatory challenges and governance issues, are likely to keep pressure on its bond prices in the near term.

Check today’s prices for Adani dollar bonds in the table below:

0	Ticker	Cpn	Maturity	Series	BBG Composite	Mty Type	Chg Pct 1D	Currency
Adani Ports & Special Economic Zone Ltd	ADSEZ	4.2	4/8/2027	REGS	BBB-	CALLABLE	0.26	USD
Adani Electricity Mumbai Ltd	ADANEM	3.949	12/2/2030	REGS	BBB-	AT MATURITY	-0.82	USD
Adani Green Energy UP Ltd / Prayatna Developers Pvt Ltd / Parampujya Solar Energ	ADGREG	6.7	12/3/2042	REGS	BB+	CALL/SINK	-0.64	USD
Adani Transmission Step-One Ltd	ADTIN	4	3/8/2026	REGS	BBB-	AT MATURITY	-2.57	USD
Adani Renewable Energy RJ Ltd/Kodangal Solar Parks Pvt Ltd/Wardha Solar Maharash	ARENRJ	4.625	15-10-2039	REGS	BB+	CALL/SINK	-6.12	USD

Adani International Container Terminal Pvt Ltd	ADINCO	3	16-02-2031	REGS	BBB-	CALL/SINK	-1.71	USD
Mumbai International Airport Ltd	MUMINA	6.6	26-07-2029	REGS	NR	CALLABLE	0.49	USD