Adani Group Returns To Loan Market As Investor Confidence Improves

Adani Group Returns To Loan Market As Investor Confidence Improves

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<p>Gautam Adani&rsquo;s conglomerate, Adani Group, is returning to the loan market to potentially raise more than $1 billion, news agency Bloomberg said. According to the report, this is the latest sign Adani Group is slowly regaining the ability to raise funds six months after a US short seller caused a meltdown in its stocks and bonds.</p>
<p>Bloomberg stated the conglomerate is in talks with Barclays Plc, Deutsche Bank AG and Standard Chartered Plc to borrow between $600 million and $750 million to refinance the debt taken on to finance its purchase of Ambuja Cements Ltd. Separately, unit Adani New Industries Ltd. has raised $394 million via a loan from Barclays and Deutsche Bank for a solar module project.</p>
<p>Adani Group has started making a comeback in fundraising in recent months following an improvement in its debt metrics. The latest efforts to secure loan deals indicate the conglomerate is further restoring investor confidence after short seller Hindenburg accused it of widespread corporate malfeasance in January.</p>
<p>Last week, Gautam Adani, chairman of Adani Group, said US-based short seller Hindenburg Research’s report was a deliberate, malicious attempt at damaging the conglomerate’s reputation and generate profit by driving down its stocks in the short term. He said that the short seller&rsquo;s report was a combination of targetted misinformation and discredited allegations written by vested interests.</p>
<p>Adani was addressing the group&rsquo;s Annual General Meeting (AGM) 2023, where he said the Hindenburg Research released the report just before the Adani Enterprises&rsquo; follow-on public offer (FPO). The group was planning to launch the largest FPO in India’s history and the short-sller report was a combination of targeted misinformation, and discredited allegations, he said.In June, AdaniConneX Pvt sold $213 million of senior debt to finance data center construction, while Adani Enterprises Ltd. raised 12.5 billion rupees ($153 million) through a local-currency bond sale this month.</p>
<p>The conglomerate is also in talks with other lenders as it seeks to refinance as much as $3.8 billion of a loan facility taken for its Ambuja acquisition. If executed, the loan of as much as $750 million would be part of that broader refinancing. The talks haven&rsquo;t yet concluded, and the amounts may still change.</p>

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