Adani Group mulls repaying $500 million loan taken to buy ACC, Ambuja Cements: Report

Billionaire Gautam Adani-led Adani Group, who faced a massive rout in shares over the past month due to a damning report by US short-seller Hindenburg Research, is mulling to repay a $500 million bridge loan facility which the conglomerate had taken last year to purchase controlling stakes in cement companies ACC Ltd and Ambuja Cements Ltd.

According to a report by the Economic Times, the embattled group is looking to repay the bridge loan with cash this month.

The report, citing people in the know, said that the loan—which had a six-month tenor—was part of a larger $5.25 billion financing package, backed by Barclays, Deutsche Bank and Standard Chartered.

According to the report, the financial syndicate lending to Adani Group also includes DBS, MUFG, Sumitomo Mitsui Banking Corp, First Abu Dhabi Bank, Intesa and Mizuho.

The ET report comes a day after the Adani Group, in its latest calm nervous investors after the recent collapse in shares, said companies face no material refinancing risk or near-term liquidity issues.

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Adani Group has endured over $120 billion in market losses- nearly half of the conglomerate’s estimated value—since the damning report released by US short-seller Hindenburg Research last month.

Hindenburg Research published a report last month, accusing the Adani Group of indulging in improper use of offshore tax havens and stock manipulation while also raising concerns about high debt and the valuations of seven listed Adani companies.

The group has denied the allegations, saying the short-seller’s narrative of stock manipulation has “no basis” and stems from an ignorance of Indian law, adding that it has always made the necessary regulatory disclosures.

However, the short-seller hit back with a scathing response titled “Fraud cannot be obfuscated by nationalism or a bloated response that ignores every key allegation we raised,”.

Hindenburg Research accused the Adani Group of holding back India’s progress by draping itself in the Indian flag while systematically looting the nation.

On February 2, Thursday, the National Stock Exchange (NSE) put Adani Ports, Adani Enterprises, and Ambuja Cements under additional surveillance measure (ASM) framework, thus requiring 100 precent margin to trade in their shares.

The Adani Group, led by billionaire chairman Gautam Adani—who himself has faced a massive dip in personal fortune and dropped out of the Forbes top 10 rich list—cancelled its fully subscribed Rs 20,000 crore Follow-On Public Offering (FPO) and returned money to its investors.

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