JP Morgan has given ‘Overweight’ on four Adani group bonds—three issued by Adani Ports & SEZ, and one by Adani Electricity Mumbai limited —Subsidiary of Adani Energy Solutions. It has taken neutral stand on other five Adani bonds and is underweight on only one bond—issued by AGEL.
Under the risks section, it further added, that Adani Bonds could do well than anticipated (i) if there is a quick resolution of the SEC/DoJ charges; (ii) successful refinancing of the upcoming bonds and credit facilities; and (iii) improved operating performance.
Spread of Adani Bonds seem to have settled after an initial volatility after US Sec and DoJ Indictment, said JPM.
Since then, the spreads of group bonds seem to have settled widening by about 100-200 bps, with short tenor seeing more spread widening due to higher dollar bonds.