Adani Group Still Eligible for Inclusion in JPMorgan’s Bond Indexes
Despite recent market pressure, the Indian conglomerate Adani Group remains eligible for inclusion in JPMorgan’s bond indexes, according to the bank.
Adani, with business interests in ports, power, and renewable energy, has a total notional value of $7.7 billion in the JPMorgan’s CEMBI and JACI indexes. The CEMBI tracks dollar debt issued by emerging market corporations, while the JACI tracks the total return performance of the Asia fixed-rate dollar bond market.
Adani’s dollar bonds also remain eligible to be part of JPMorgan’s ESG Global Corporate Index (JESG), which assesses a company’s environmental, social, and governance practices. JPMorgan stated that it will continue to monitor the situation and take action in case of market disruption or a confirmed default event.
The pressure on Adani’s shares and bonds began after a critical report was released by short-seller Hindenburg Research on January 24th. Adani has rejected the allegations of stock manipulation and tax avoidance, but its weight has decreased in the CEMBI and JACI indexes.
The company’s flagship, Adani Enterprises, was forced to abandon a $2.5 billion share sale last week. Despite the recent losses, Adani remains a prominent player in the emerging markets.
JP Morgan did not respond to a request for comment.
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