Investors urged to support Adani bond buybacks

Adani Green Energy (AGEL) has refinanced a $1.06 billion construction loan, which was due in March 2025. This refinancing is significant as it lowers the funding cost to 9.2% and extends the loan's life to 19 years. The original loan was secured in 2021 to support wind-solar hybrid projects. Analysts are advising investors to push for targeted bond buybacks from the Adani Group. This move aims to reduce risk and manage the large amount of debt that is due soon. A recent credit report from Nomura highlighted the encouraging results of AGEL's refinancing efforts and suggested that buybacks could help address debt concerns across the Adani Group. In addition, recent developments in the U.S. regulatory landscape have been viewed positively. Analysts noted that the Trump administration's executive order to pause enforcement of the Foreign Corrupt Practices Act (FCPA) could benefit AGEL, which is currently under investigation. Following positive updates from Fitch Ratings, Adani Group's U.S. dollar bonds have seen a rebound. Some of the specific bonds, like the Adani Green 4.625% 2039 and 6.2% 2042, have increased in value. Looking ahead, Adani Airport Holdings faces repayments of $250 million in May 2025 and $150 million in September 2025. Adani Energy Solutions has a larger payment of $500 million due on secured U.S. dollar bonds in August 2026. JP Morgan has revised its outlook on Adani Green's bonds, indicating they expect the bonds to perform well due to recent refinancing success. They have rated these bonds as overweight, reflecting increased confidence in the company's financial stability.