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Adani Group hires banks to hold investors’ calls amid debt crunch




Adani Group hires banks to hold investors' calls amid debt crunch

At least 200 institutions have exposure to Adani Group’s bonds worth $8 billion. (file)

Adani Group will close the call with bondholders on Thursday as the beleaguered conglomerate seeks to reassure investors following a collapse in the value of its debt.

Banks are holding meetings with fixed income investors next week on behalf of Adani Group, Adani Green Energy Ltd and Adani Transmission. The calls are scheduled for February 16 and February 21, according to a person familiar with the matter. Barclays Plc, BNP Paribas SA, DBS Bank Ltd, Deutsche Bank AG, Emirates NBD Capital, ING Grope NV, MUFG, Mizuho, ​​SMBC Nikko and Standard Chartered Bank are organizing the call, the person said.

It is not clear what will be discussed during the meetings, but the focus has been on the debt pile of Adani group companies. A bullish report from short seller Hindenburg Research wiped out more than $120 billion of Empire’s market value, while yields on its bonds soared by double digits, raising borrowing costs for the company.

At least 200 financial institutions around the world – including ones such as the world’s largest asset manager, BlackRock Inc – had investments in Adani Group’s $8 billion bonds, most of which were hit by financial turmoil following Hindenburg’s fraud allegations. Got into trouble after the upheaval.

The long list of funds with exposure to Adani’s debt underscores how much demand there was to invest in the group before short-seller reports caused its stock and bonds to fall. Billionaire Gautam Adani is in talks with creditors to repay some of the loans backed by pledged shares, in a bid to restore confidence in the group’s financial health.

His flagship firm, Adani Enterprises Ltd., which is based in the tycoon’s home city of Ahmedabad in western India, on Tuesday reported a net income of 8.2 billion rupees ($99.1 million) for the quarter ended December 31, compared with a loss of 116.3 million rupees. Did. Same period last year.

Adani group companies said in a stock exchange filing that it does not face any material refinancing risk and has no near-term liquidity needs. The company also does not have any significant debt maturing in the near term.

There weren’t enough brokerages tracking the company to get an average profit forecast.

(Disclaimer: New Delhi Television is a subsidiary of AMG Media Networks Limited, an Adani Group Company.)

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