Adani Group Looks To Prepay Up To $790 Million Share-Backed Loans By March: Report

This comes as the conglomerate, led by Gautam Adani, is looking to burnish its credit profile after seven listed Adani Group companies lost over $140 billion in market value

Adani Group is planning to prepay or repay share-backed loans worth between $690 million and $790 million by end of March this year, reported news agency Reuters. The report citing two people with knowledge of the matter said also said that Adani Green Energy plans to refinance its 2024 bonds via an $800 million, three-year credit line. 

The report said that these plans were presented by the firm’s management to the group's bondholders in Hong Kong on Tuesday.

This comes as the group led by Gautam Adani is looking to burnish its credit profile after seven listed Adani group of companies lost over $140 billion in market value since a January 24 report by Hindenburg Research alleged the group improperly used tax havens and manipulated stock, and flagged concerns over its high debt levels, the report said. 

Adani has denied the accusations multiple times. 

According to the report to assure investors, Adani spoke with bondholders earlier this month. Group executives discussed plans to refinance some of the company's units as well as to fully prepay all loans secured by shares.

The three-day roadshow scheduled to end in Hong Kong on Wednesday marks the latest effort by Gautam Adani’s group to reassure investors. 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 the distressed territory. 

It was previously reported that Adani Ports and Special Economic Zone, a group firm of Adani Group, plans to prepay Rs 1,000 crore ($120.8 million) in commercial papers maturing in March. 

According to a report by the Economic Times (ET), the Securities and Exchange Board of India (SEBI) has sought details of all ratings of local loans and securities of Adani Group firms from credit rating firms. The market regulator has asked the rating companies to share details of Gautam Adani-led group firms, which would include all outstanding ratings, outlook, and possible updates from any discussions with officials of the business group.

A person privy to the development told ET, “The SEBI is probably trying to ascertain whether the sharp fall in stock prices of several Adani companies would have any bearing on the liquidity positions and the debt repayment capability of the borrowing companies. Most of this information, however, is in public domain.”