The Adani group is trying to win back investors’ confidence following Hindenburg’s allegations of inappropriate use of offshore tax havens and stock manipulation. It’s communicating to investors that top European and Japanese banks have shown confidence in the group. A report by a business daily claimed that the group, through a series of roadshows from Hong Kong to New York, committed to a 20% year-on-year growth in core earnings and pledged to diversify its debt portfolio.
The daily also accessed a document which revealed that global banks such as “MUFG, SMBC, Mizuho, Standard Chartered, Barclays, DBank (Deutsche Bank), consortium lender banks have reaffirmed confidence in Adani group.”
“The group has consistently diversified its long-term debt portfolio and has reduced its exposure to banks by using other sources of capital,” a part of the document read. It added that as of now 39% of Adani’s debt is in the form of bonds, 29% from global banks and 32% from public or private banks in India.
The report claimed that the Adani group is gradually consolidating its position in the market after repaying some debts. And recently, GQG Partners bought shares worth $1.87 billion in four Adani group companies.
The daily cited a report claiming that the consolidated debt of the top five Adani group companies — it included an element of double counting — stood at $25.56 billion. Indian banks comprised 38% of the pie.
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