Bangalore, India, March 3, 2023
According to a Reuters article published on Wednesday, The Adani Group has informed its creditors that it has obtained a $3 billion loan from a sovereign wealth fund. The sovereign wealth fund’s credit line could be increased to $5 billion, according to two persons with knowledge of the situation who spoke to Reuters.
In a memo distributed to participants, the recent capital injection was listed as one of the highlights of a three-day investor roadshow in Singapore, and Hong Kong that will end on Wednesday, March 1st. The memo omits revealing the name of the sovereign wealth fund.
The Adani Group announced on Tuesday that it intends to prepay or repay share-backed loans between $690 million to $790 million by the end of March 2023. After Hindenburg Research published a damning study accusing the Adani Group of stock manipulation and fraud through a flurry of shell companies, the company came under fire. The market capitalization of the Adani Group decreased by 60–70% when the report was published on January 24.
Along with opportunities, there also exist many other tricky and complex issues to be managed in India. These include tackling both policy-level challenges and infrastructure challenges.
A $800 million, three-year credit line will be used by Adani Green Energy to refinance its 2024 notes, the group announced on Tuesday. The management gave these ideas to the group’s bondholders on Tuesday in Hong Kong.
The group is presenting the proposals this week in Singapore and Hong Kong as part of a fixed-income roadshow to reassure investors. The bank’s roadshow is apparently being organised by Barclays, BNP Paribas, DBS Bank, Deutsche Bank, Emirates NBD Capital, ING, IMI-Intesa Sanpaolo, MUFG, Mizuho, SMBC Nikko, and Standard Chartered Bank.
It’s not the first time that Adani has taken action to gain the trust of investors. Prior to this, Adani Group had claimed that its firm had robust cash flows and was fully funded.
The asset management division of JPMorgan Chase & Co recently sold shares in the company. JPMorgan Global Emerging Markets Research Enhanced Index Equity ESG UCITS ETF sold 70,000 shares of ACC Ltd., a company that makes cement, and sold a previous investment it had made in the company in May 2021.
Also, the 1,350 shares of ACC that JPMorgan AC Asia Pacific ex Japan Research Enhanced Index Equity ESG UCITS ETF had been holding since July of last year were sold. Once owning 0.04 percent of ACC, JPMorgan no longer has any ESG funds that connect it to any Adani conglomerate entities.
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