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Adani Group Loan Payment: The time since the last week of January has been the worst for the Adani Group. Experts are sure that soon there will be a change and Adani Group shares will touch their height, where they were before January 24. In fact, the Adani Group plans to repay the outstanding $500 million bridge loan next month after some banks refused to refinance the loan following an onslaught of short sellers that hit the group hard. Barclays Plc, Standard Chartered Plc and Deutsche Bank AG were among the banks that gave Adani $4.5 billion in loans last year for the purchase of Holcim Ltd’s cement assets. A part of that loan is to be repaid on 9th March.
Adani group preparing to pay the loan
Experts point out that till a week before the Hindenburg Research report was published, the lenders were in talks to refinance the loan. An Adani spokesperson said the group was in talks with banks to refinance part of the loan, but the group plans to prepay it. The spokesperson said that the talks with the banks have not stopped. Representatives for Barclays and Deutsche Bank declined to comment. The group said on Monday that billionaire Gautam Adani and his family have repaid $1.11 billion in borrowings backed by shares. According to a media report, Adani faced a margin call of over $500 million on that loan, prompting the Indian tycoon to repay the loan in full. Adani Group said it had not received a formal request for the margin call and the loan was repaid early “as per our prepayment plan”.
There has been a decline of 117 billion dollars
Global banks are intensifying their investigation of the group following the Hindenburg report. Citigroup Inc’s wealth arm has stopped accepting Adani securities as collateral for margin loans, following a similar move by Credit Suisse Group AG. The corporate empire of Adani, once the second richest man in the world, is in dire straits after the Hindenburg report. Ten Adani Group companies, including Adani Total Gas Ltd, Adani Enterprises Ltd and Adani Transmission Ltd, have siphoned off $117 billion from their combined market value in sales at one point.
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