Adani Group says it has secured $3 billion credit from sovereign wealth fund, claims report

The Adani Group has told its creditors that it has secured a $3 billion loan from a sovereign wealth fund, a Reuters report said on Wednesday. Two sources with knowledge of the matter told Reuters that the credit line from the sovereign wealth fund could be upsized to $5 billion.

The fresh capital infusion was cited in a memo that was circulated to participants as highlights of a three-day investor roadshow in Singapore Singapore and Hong Kong, which will be ending on Wednesday. The identity of the sovereign wealth fund has not been disclosed in the memo.

On Tuesday, the Adani Group said it has plans to prepay or repay share-backed loans worth between $690-790 million by end of March 2023. The Adani Group has been under pressure after Hindenburg Research released a scathing report accusing it of stock manipulation and fraud through a wave of shell firms. Following the release of the report on January 24, the Adani Group saw its fortune deplete by 60-70 per cent in market capitalisation.

On Tuesday, the group said Adani Green Energy would also refinance its 2024 bonds through an $800 million, three-year credit line. These plans were presented by the management to the group’s bondholders in Hong Kong on Tuesday.

The plans are being unveiled as the group holds a fixed-income roadshow this week in Singapore and Hong Kong to shore up investors’ confidence. Barclays, BNP Paribas, DBS Bank, Deutsche Bank, Emirates NBD Capital, ING, IMI-Intesa Sanpaolo, MUFG, Mizuho, SMBC Nikko and Standard Chartered Bank are reportedly organising the bank’s next week's roadshow.

This is not the first time when Adani is doing something to win the confidence of investors. Earlier, Adani Group had said that the company has strong cash flows and its business plans were fully funded.

Recently, JPMorgan Chase & Co’s asset management unit offloaded shares in the group. JPMorgan Global Emerging Markets Research Enhanced Index Equity ESG UCITS ETF offloaded 70,000 shares in cement manufacturer ACC Ltd. and exited a stake it had held since May 2021.

JPMorgan AC Asia Pacific ex Japan Research Enhanced Index Equity ESG UCITS ETF also sold 1,350 shares it had held in ACC since July last year. JPMorgan once held 0.04 per cent in ACC but now has no exposure to any parts of the Adani conglomerate via ESG funds.

Stock prices

The Adani Group stocks, Adani Enterprises, Adani Ports & SEZ and Adani Green Energy, saw an uptick in Wednesday’s trade which lifted Adani group's combined market capitalisation by Rs 39,000 crore to above Rs 7.50 lakh crore mark. This is the second day of rise for Adani group shares. Adani group companies had added about Rs 30,000 crore to the group m-cap on Tuesday.