As confirmed by the latest reports, the Adani Group will pre-pay a loan of $500 million by next month to a group of banks.
The Adani Group has recently found itself in a storm of controversy, which also caused Adani to sink in the rank of India’s richest person list.
Adani Group To Repay $500 Million Loan By Next Month
The Adani Group wants to strengthen its finances after being targeted by short sellers, so it plans to prepay a $500 million loan that is due to a group of banks next month.
In order to purchase the cement assets from Holcim Ltd. last year, Adani received a $4.5 billion loan from banks including Barclays Plc, Standard Chartered Plc, and Deutsche Bank AG. On March 9, a portion of that loan is due.
According to a spokesperson for Adani, the company had discussions with banks about refinancing that portion of the loan but ultimately decided to prepay it. The spokesperson claimed that talks with the banks are still moving forward.
Following the publication of the Hindenburg Research report on alleged misconduct, Gautam Adani’s corporate empire, which he once controlled as the second-richest person in the world, has been severely damaged.
Hindenburg Research’s Allegations Against Adani
The selloff at ten Adani group companies, including Adani Total Gas, Adani Enterprises, Adani Transmission, and Adani Ports, at one point, reduced the combined market value of those companies by $117 billion, forcing the tycoon to increase the value of the shares he pledged as collateral for loans.
According to Hindenburg Research, a web of Adani family-controlled offshore shell companies in tax havens were used to facilitate money laundering, tax fraud, and corruption. The conglomerate described the report as “bogus” and vowed to sue. Adani claimed that the company’s balance sheet is sound in a video speech he gave last week.
Following its founders’ prepayment of some debt and traders’ covering of short positions, Adani Enterprises rallied on Tuesday, leading gains for the majority of the group’s stocks. The shares of the flagship increased by 25% before closing up nearly 15%.
