Adani Abbot Point Terminal – Updated recommendations

Adani Abbot Point Terminal is performing slightly ahead of expectations, with current throughput about 10% ahead of prior year. We have revised our recommendation on the 2020 AUD notes to Underperform, due to yield compression as the next call date rapidly approaches. Although the current yield to worst of close to 4% may continue to be attractive to some investors, we believe there is better value in other names in the infrastructure sector. We are maintaining our Outperform recommendation on the 2022 USD notes.