(Bloomberg) --
A drop in the yield premiums on Indian companies' dollar bonds means those on Adani Group securities are below their level when shortseller Hindenburg Research's report was published in 2023.
Bloomberg's gauge of Indian corporate and quasi sovereign debt showed spreads hit their tightest in more than three years this week. The metric for each of the 15 US-currency notes issued by billionaire Gautam Adani's conglomerate is at least 50 basis points below its Jan. 23, 2023 level, according to Bloomberg-compiled data.
Broadly speaking, the spreads on dollar bonds across Asia have narrowed due to a lack of new issuance and as investors bet the Federal Reserve will eventually lower borrowing costs.
Yield premiums are also considered an indicator of risk. The allegations of fraud and malfeasance published by Hindenburg in January 2023 — resolutely denied by Adani - prompted concerns the conglomerate would have to pay dearly when borrowing money.
But over the past year Adani has trimmed its debt load and successfully refinanced the borrowings for its Ambuja Cements Ltd. and ACC Ltd. acquisition.
Moody's Investors Service this week raised the outlook to stable from negative for four Adani companies. The assessor said the group demonstrated continued access to equity markets and debt capital at a reasonable cost.
--With assistance from Divya Patil.
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