Credit Of $3 Billion Secured From Sovereign Wealth Fund, Adani Group Tells Creditors: Report

Sources said that a memo was circulated to participants as highlights of a three-day investor roadshow ending on Wednesday, which shared the details of the secured credit line

The report said that the credit line from the sovereign wealth fund could be upsized to $5 billion. 

In a bid to ease concerns, Gautam Adani-led Adani Group has told creditors that it has secured a $3 billion loan from a sovereign wealth fund, reported news agency Reuters. The report citing two sources with knowledge of the matter said that the credit line from the sovereign wealth fund could be upsized to $5 billion. 

Sources told the news agency that a memo was circulated to participants as highlights of a three-day investor roadshow ending on Wednesday, which shared the details of the secured credit line. However, it did not disclose the identity of the sovereign wealth fund.

The three-day roadshow scheduled to end in Hong Kong on Wednesday is the latest effort by Gautam Adani’s group to reassure investors, after seven listed Adani group companies lost over $140 billion in market value since January 24, when a report by Hindenburg Research alleged the group improperly used tax havens and manipulated stock, and flagged concerns over its high debt levels. Adani group has denied all the accusations.

On Tuesday, Reuters reported that Adani Group is planning to prepay or repay share-backed loans worth between $690 million and $790 million by end of March this year.

Shares of Adani Enterprises jumped 12 per cent to Rs 1,532.85 on the BSE in Wednesday’s intra-day trade, extending its previous day’s gain. In the past two days, the stock of the Adani group flagship firm has rallied 28 per cent.

On Tuesday, shares of the Adani group of companies ended with gains. Eight of the 10 listed firms of Adani Group registered gains at the closing bell.

The price of Adani Enterprises stock increased 14.22 per cent to close at Rs 1,364.05 on the BSE. During the day, it rallied 19 per cent to Rs 1,421.95.

Adani Ports shares increased by 5.44 per cent, Adani Green Energy shares increased by 5 per cent, Adani Wilmar shares registered 5 per cent gains, and NDTV shares jumped by 4.99 per cent.