Anthropocene Fixed Income Insitute

We review a number of broadly market traded issuers and securities in relationship to the enablement of the biggest greenfield coal development in the world.

A new Moody's report highlights the linkage between the Carmichael coal mine build and Adani Enterprises. We tally the investors in the company which includes some surprising names, given the deluge of ESG commitments. The explanation appears to be "passive investments" which we discuss.

We review intensified coal mine engagements,  Myanmar coup sanctions, potentially misleading carbon disclosure, and  resistance to syndicate new bonds from climate cognizant banks as  factors to take into consideration for ADSEZ bond investors.

(9 Feb 2021)

ADAABB 22s trading at 90 cents on the dollar 10 months before maturity illustrates diffculties in coal refinancing. Rescuers could drive hard bargains to refi/restrucutre the bonds, and related parties such as ADSEZ and ADEIN should monitor the situation.

(17 Feb 2022)

Following a critical research report by a short-seller, Adani Group dollar bonds have fallen on average 11.5% whereas the Adani Group sub-equities have fallen much less.

(25 Jan 2023)

Most of Adani's bonds have a BBB- rating but are currently pricing at levels below that. There could be implications for some investors if the bonds fall below the investment grade threshold.

(30 Jan 2023)

The recent exclusion of Adani Enterprises from several equity ESG indices raises the questions: why was the name there in the first place, and how much money have investors lost due to that inclusion? The ESG controversies around the name, in particular greenfield thermal coal mining (e.g. Carmichael), are not new.

(10 Feb 2023)

 The Adani Ports and Green capital stacks are being used to provide credit for the Carmichael mine. Investors should evaluate their exposure. 

(14 Feb 2023)

The GPs and LPs of EQT Infrastructure Funds IV (PE18786 SS) and V (PE23927 SS) should examine potential capital raising by portfolio company EdgeConnex’s joint venture AdaniConneX, as this could be viewed as a financing transaction for Adani Power and, more broadly, Adani Group.

(5 Apr 2023)