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India's Adani group saw massive demand on Monday for its first dollar bond since a short-seller attack last year, in what two banking sources said was being seen internally as a test for the conglomerate's access to global capital markets.

Adani Green Energy priced a $409 million 18-year bond after receiving nearly $3 billion of demand for it, said the sources, who have direct knowledge of the deal.

Adani Green's bonds paid a yield of 6.7%, 42.5 basis points cheaper than levels initially proposed when the deal was announced this morning, thanks to strong investor demand.

"The issuer was able to significantly tighten the pricing from the initial guidance, which is a testament to strong demand and enthusiasm for Indian companies, especially in the infrastructure and renewable space," the second banker, who was also one of the bookrunners, said.

Other operating companies in the group could follow with bond issues after seeing robust demand, which came primarily from Asia, the Middle East and Europe, the first source said.

The board of Adani Green Energy has approved the above-mentioned pricing, tenure and the other terms of the bond issue, it informed Indian exchanges on Tuesday.

Adani group company stocks and bonds saw a massive selloff after U.S. short seller Hindenburg Research issued a report that alleged improper governance practices, stock manipulation and use of tax havens by the Adani Group. The group has denied these allegations.

In the aftermath of the selloff Adani executives and advisers launched a charm offensive with investors globally, according to the bankers.

The proceeds from the above mentioned issue will be used by the company to repay $500 million of senior unsecured notes that mature in June.

The bonds are rated 'Ba1' by Moody's Investor Service and 'BBB-' by Fitch Ratings.