Mumbai International Airport has delayed a proposed dollar bond offering, people familiar with the matter say, as market volatility prompts borrowers around the world to adjust their funding plans.
The operator of India’s second-largest airport had said in an exchange filing in late February that it would meet with investors for the proposed issuance. But the upheaval in the financial market following Russia’s invasion of Ukraine means the deal has been put on hold, the people said, asking not to be identified as the talks are private.
A spokesman for parent company Adani Group, controlled by one of India’s wealthiest men, declined to comment when contacted by Bloomberg about the planned show.
With global inflation soaring and investors bracing for higher interest rates, sales of dollar-denominated bonds in Asia ex-Japan so far this year have fallen to the lowest for similar periods since 2016 at only around $50 billion.
A number of Asian companies have recently changed their issuance strategy due to market volatility. Japan Airlines Co. suspended part of a bond deal scheduled in February, while Orix Bank Corp. decided to delay a planned two-tranche ticket sale.
Any eventual bond issue from Mumbai International Airport could be the industry’s first since the coronavirus delta wave hit India last year.
Fitch had assigned an expected rating of BB+ with a stable outlook to the proposed notes, according to last month’s filing.
Dear reader,
Business Standard has always endeavored to provide up-to-date information and commentary on developments that matter to you and that have wider political and economic implications for the country and the world. Your constant encouragement and feedback on how to improve our offering has only strengthened our resolve and commitment to these ideals. Even in these challenging times stemming from Covid-19, we remain committed to keeping you informed and updated with credible news, authoritative opinions and incisive commentary on relevant topical issues.
However, we have a request.
As we battle the economic impact of the pandemic, we need your support even more so that we can continue to bring you more great content. Our subscription model has received an encouraging response from many of you who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of bringing you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism we are committed to.
Support quality journalism and subscribe to Business Standard.
digital editor
