📉 Nikkei is down nearly 5% -> here are 43 recession-proof Japanese stocks from our screenerUnlock Now

Adani Group prepays debt in bid to reassure investors

Published 08/03/2023, 02:33 am
Updated 08/03/2023, 03:00 am
© Reuters.  Adani Group prepays debt in bid to reassure investors

Adani Group promoters today announced that they have prepaid share-backed financing to the tune of US$902mln (£759mln) more than two years ahead of maturity as the crisis-stricken Indian conglomerate seeks to deleverage its debt levels.

In order to prepay debts taken out from domestic and internations lenders, the following shares will be released from Gautam Adani’s ports-power group of subsidiaries:

  • Adani Ports and Special Economic Zone: 155 million shares, representing 11.8% of the promoters’ holding
  • Adani Enterprises: 31 million shares, representing 4.0% of promoters’ holding
  • Adani Transmission: 36 million shares, representing 4.5% of promoters’ holding
  • Adani Green Energy: 11 million shares, representing 1.2% of promoters’ holding
Per Indian corporate structure, promoters refer to company founders with a controlling interest in the company. Promoters’ names were not disclosed, but were likely members of the S. B. Adani Family Trust.

“Along with the repayments done earlier in the month of February, Adani has prepaid US$2bn of share-backed financing, which is consistent with promoters’ commitment to prepay all share-backed financing before 31 March 2023,” the company stated.

Adani Group has been scrambling to recover from the stunning US$145bn in market losses seen in the past month in the wake of Hindenburg Research’s brutal investigation into the group.

Hindenburg, an infamous New York activist investment firm and short seller, published a lengthy research piece into Adani’s Indian business empire in January, detailing allegations of fraud, stock manipulation and money laundering

Adnani last week notified creditors that it had secured a multibillion-dollar leg-up from US investment firm GQG Partners

Rumours of a US$3bn credit line from an unnamed sovereign wealth fund reported by Reuters last week have not been corroborated.

Read more on Proactive Investors AU

Disclaimer

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.