Adani Repays $500 Million Bridge Loan Ahead Of March 9 Deadline: Report

Adani Group on Tuesday said that it has prepaid the share-backed financing amount of Rs 7,374 crore ($902 million) ahead of its latest maturity in April 2025

The move is part of the conglomerate effort to restore confidence in its financial health after a scathing short seller report. 

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The Adani Group has repaid a $500 million bridge loan, reported Bloomberg, citing people with knowledge of the matter. According to the report, Global banks had lent Adani group $4.5 billion to finance the purchase of Holcim Ltd. cement assets last year, and a portion of this was due March 9.

It added that the move is part of the conglomerate effort to restore confidence in its financial health after a scathing short seller report. Following a report by Hindenburg Research in late January that sent Adani assets plunging, some banks hesitated to renew the loan, the report said.

A bridge loan is a short-term loan used by a firm until it secures permanent financing or pays an existing obligation. It allows the borrower to meet current obligations by providing immediate cash flow. 

Adani Group on Tuesday said that it has prepaid share-backed financing of Rs 7,374 crore ($902 million) ahead of its latest maturity in April 2025. The company said that the move is part of its promoters' commitment to cut overall leverage backed by shares of the Group's listed companies.

The company statement said, "Along with the repayments done earlier in the month of February, Adani has prepaid $2,016 million of share-backed financing, which is consistent with promoters’ commitment to prepay all share-backed financing before March 32 2023."

The billionaire Gautam Adani-led Adani Group has been looking to ease concerns about its credit profile after a US-based short seller noted high debt and alleged improper use of offshore tax havens and stock manipulation. The group has denied all allegations, calling them "malicious", "baseless" and a "calculated attack on India".

According to a PTI report, Adani Group has almost $2 billion worth of foreign-currency bonds coming up for repayment in 2024. 
The conglomerate borrowed over $10 billion in foreign currency bonds between July 2015 and 2022 across group companies. Of this, $1.15 billion of bonds matured in 2020 and 2022.

According to the report, Adani group management, including Group Chief Financial Officer Jugeshinder Singh, last month held roadshows in Singapore and Hong Kong to reassure investors that the company's finances are under control. These are to be extended to Dubai, London, and the US from March 7 to 15. Executives told investors they will address upcoming debt maturities including by potentially offering private placement notes and using cash from operations.