NEW YORK- An advocacy group focused on the impact of debt markets on climate change called on Monday for major bond investors to shun India’s Adani Group, saying a critical report by a short-seller had undermined confidence in the company’s governance.
US firm Hindenburg Research prompted a multi-billion-dollar sell-off in the Indian group’s stocks last week by launching accusations of improper use of offshore tax havens and high debt. Billionaire chairman Gautam Adani, one of the world’s richest people, dismissed these as baseless.
Activist groups participating in a campaign called Toxic Bonds said they had written to money managers, including BlackRock, Allianz and Pimco, to reject new investments or credit arrangements with Adani, and publicly divest their holdings.
Spokespeople for the Adani Group, BlackRock, Allianz and Pimco did not immediately respond to requests for comment.
Dollar bonds issued by entities of India’s Adani Group rose on Tuesday after a sharp dive in the past few days following a scathing report by a US short seller that triggered a rout in the conglomerate’s listed firms.
US dollar-denominated bonds issued by Adani Ports and Special Economic Zone continued their fall into a second week, with the bond maturing in August 2027 gaining
about 4.3 cents to 78.05 cents, coming off multi-year lows it touched on Monday.
International bonds issued by Adani Green Energy, Adani Economic Zone, Adani Transmission and Adani Electricity Mumbai also edged higher. – Reuters
