Adani Group CFO Says No Refinancing, Capital Plans At Hong Kong Roadshow

CFO Jugeshinder Singh’s comments came after company executives said on Monday Adani Group has enough money to repay debt due over the next three years in addition to an $800 million credit facility

Gautam Adani-led Adani Group isn’t seeking to refinance debt or inject capital, its finance Chief Financial Officer (CFO) Jugeshinder Singh said on the sidelines of an investor roadshow aimed at rebuilding confidence in the crisis-ridden conglomerate, reported by news agency Bloomberg.

Singh’s remarks were in response to questions from Bloomberg News while attending investor meetings in Hong Kong on Tuesday.

According to the report, the three-day roadshow scheduled to end in Hong Kong on Wednesday marks the latest effort by Gautam Adani’s group to reassure investors after US short-seller Hindenburg Research accused it of accounting fraud and stock manipulation. The ports-to-power conglomerate has repeatedly denied the allegations made by Hindenburg in a January 24 report.

Singh’s comments came after company executives said on Monday Adani Group has enough money to repay debt due over the next three years in addition to an $800 million credit facility. 

When asked “Are you looking to refinance any debt?” Singh said, “No, we don’t have anything major at all. There’s no transactions.” He said without specifying a timeframe or divulging further. Singh said “No” in response to the question: “Are you looking to inject any capital?"

Adani Group has taken a suite of rescue moves in recent weeks, from cutting expenses to early debt repayment, that have helped pull most of its dollar bonds from distressed territory. However, the notes remain below levels seen before the short-seller’s report while a stock selloff also has extended.

Even as many of the group’s at least 15 dollar bonds have rebounded from recent lows, they are still about 5 per cent to 18 per cent lower than where they were before Hindenburg released its report, amounting to a combined loss of about $800 million, according to Bloomberg-compiled data.

At least two of the investors in attendance told the agency they’ve been buying Adani bonds, citing the group’s credit quality backed by cash-generating assets. Two others, however, said they were cautious about new debt investments in the group until corporate governance issues were resolved.