According to two main sources with knowledge of the case, India’s Adani Group has informed creditors that it has obtained a $3 billion loan from a sovereign wealth fund as the troubled conglomerate attempts to allay debt worries following a short-seller assault. The sources cited a memo that was distributed to participants as one of the features of a three-day investor tour that concluded on Wednesday in order to support their claim that the sovereign wealth fund’s credit line could be raised to $5 billion.
The sources refused to give their names due to the fact they were not authorized to speak with the media. The information was released a day after Adani management informed bondholders that it anticipated paying off or repaying share-backed debts totaling $690 million to $790 million by the month of March. The company is holding a fixed-income tour this week in Hong Kong and Singapore in order to reassure investors following sharp share price declines and a regulatory investigation. The strategies are being unveiled at that time.
Seven listed Adani Group businesses have seen their market value decline by more than $140 billion since a Hindenburg Research report on January 24 raised allegations of stock manipulation as well as improper use of tax havens as well as questions about debt levels. Adani has refuted all wrongdoing and rejected the accusations. On the final day of the tour in Hong Kong, Adani management claimed that a part of the $3 billion credit had already been used to pay off some of the company’s share-backed loans.
According to sources with knowledge of the situation, the Indian Adani Group has allegedly secured a $3 billion loan from a wealth fund. With the loan, the troubled conglomerate could possibly increase its credit line to $5 billion and handle debt issues that resulted from a short-seller attack. In order to reassure investors in the wake of share price declines as well as regulatory scrutiny, Adani is presently making a fixed-income tour stop in Singapore and Hong Kong.
