Adani Group Firm In Talks To Pick Up More Dollar Debt, Brushing Off Hindenburg Impact

Gautam Adani’s conglomerate is reportedly in discussions to raise around $500 million (₹4,152 crore) through dollar bonds, marking its first overseas issuance since a scathing report by US short-seller Hindenburg last year cast doubt on its ability to refinance debts.

What Happened: Adani Green Energy is leading the talks with a consortium of foreign banks, including a US-based firm, Bloomberg reported, citing sources. While the transaction is anticipated later this year, the terms are subject to change as the deal is yet to be finalised.

The conglomerate’s financial health has been under intense scrutiny following allegations of fraud and stock manipulation by Hindenburg Research. Despite Adani refuting these claims, the report triggered a sell-off in the group’s assets, raising concerns about its future fundraising prospects.

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Although attempts to refinance debts incurred for acquiring Ambuja Cements and ACC faced hurdles following the allegations, Adani successfully secured a $3.5 billion (₹29,069 crore) funding package later in the year.

The upcoming maturity of Adani Green’s $750 million (₹6,229 crore) note in September serves as a significant test for the group’s financial resilience post the Hindenburg incident. The company recently announced arrangements to repay the debt, including contributions from Adani and associates, aimed at a substantial reduction of debt.

Amidst these challenges, Adani’s conglomerate has undertaken measures to strengthen its financial position, including debt reduction, minimising founders’ share pledges, and securing major projects.

This strategic manoeuvring has restored investor and lender confidence, leading to a recovery in the group’s stocks and bonds. Additionally, the conglomerate attracted fresh equity investments from notable entities like GQG Partners LLC and Qatar Investment Authority, signaling a positive trajectory for its future endeavours.

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