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Adani Group mandated banks to sell roughly $409 million of bonds in what stands to become the conglomerate’s first overseas issuance since a report by short seller Hindenburg Research prompted concerns about its finances. 

The proposed debt will have a tenor of 18 years and will be used for redeeming $500 million of notes maturing in December, according to the group’s statement to the stock exchange. 

The finances of billionaire Gautam Adani’s ports-to-power empire have drawn close scrutiny ever since Hindenburg Research in 2023 levied accusations of fraud and stock manipulation. Adani has repeatedly denied the claims. 

Meetings with investors in Asia, the Middle East, Europe and the US, arranged by the joint bookrunners, will take place from Feb. 28. 

One of the biggest corporate takedowns every by a short-seller triggered a rout in Adani shares and bonds, suggesting the conglomerate — with port terminals, power lines, airports, data centers, solar parks and cement plants — would have to pay dearly when raising capital. 

But executives have sought to rebuild investor confidence, and since the January 2023 Hindenburg broadside have trimmed debt, pared founders’ share pledges and landed major projects. 

The group’s stocks and bonds have recouped losses, and its has also won fresh equity capital from investors including GQG Partners LLC and Qatar Investment Authority. 

Adani last year also successfully completed a $3.5 billion funding package to refinance debt taken out for the purchase of Ambuja Cements Ltd. and ACC Ltd.

 

--With assistance from Ameya Karve and Divya Patil.

(Updates with additional background from third paragraph)

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