Adani Bond Portfolio's Liquidity Stable, Short-Term Papers Attractive, Says JPMorgan

Billionaire Gautam Adani's group companies liquidity seems stable after accounting for near-term maturities for offshore debt, JPMorgan said, adding that Adani Green Energy Ltd.'s bond issue will be in focus.

After tabulating near-term maturities for offshore debt at various group companies, JPMorgan took "varying degrees of comfort". It said the key to watch among the bond-issuing entities is mainly Adani Green, which has a decent-size loan ($1.1 billion) due in March 2025.

One of the push-backs from the investors was the unsecured nature of the ADSEZ dollar-denominated bonds, the brokerage said. However, JPMorgan favoured cash flows over security largely on its ability to scale and grow using internal cash flows.

The Adani Group has firmly rejected allegations made by the US authorities and later said that Founder Gautam Adani, Adani Green Energy Executive Director Sagar Adani, and Chief Executive Officer Vneet Jaain have not been named in the bribery charges.

The operational risks in Adani Group have reduced over the years, with a fall in share pledges, and improving leverage among others, Bernstein Research recently said in a note.