By Shankar Ramakrishnan and Bhakti Tambe

March 4 (Reuters) - India's Adani group saw massivedemand on Monday for its first dollar bond since a short-sellerattack last year, in what two banking sources said was beingseen internally as a test for the conglomerate's access toglobal capital markets.

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

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

"The issuer was able to significantly tighten the pricingfrom the initial guidance, which is a testament to strong demandand enthusiasm for Indian companies, especially in theinfrastructure and renewable space," the second banker, who wasalso one of the bookrunners, said.

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

Adani group did not immediately respond to Reuters' emailseeking comments.

Adani group company stocks and bonds saw a massive selloffafter U.S. short seller Hindenburg Research issued a report thatalleged improper governance practices, stock manipulation anduse of tax havens by the Adani Group. The group has denied theseallegations.

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

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

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