India’s Adani Group has told creditors it has secured a $3-billion loan from a sovereign wealth fund, two sources with knowledge of the matter said.
The credit line from the sovereign wealth fund could be upsized to $5 billion, the two sources said. They cited a memo that was circulated to participants as highlights of a three-day investor roadshow ending on Wednesday.
The identity of the sovereign wealth fund was not disclosed in the memo.
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The sources declined to be identified as they were not authorised to speak with media. And a spokesperson for Adani did not immediately respond to a request for comment.
Surging shares
The development comes as the embattled conglomerate seeks to ease concerns about its credit profile after US short-seller Hindenburg Research accused it of ‘The largest con in corporate history’.
The news also comes a day after Adani management told bondholders that it expected to prepay or repay share-backed loans worth $690 million to $790 million by end-March.
The plans are being unveiled as the group holds a fixed-income roadshow this week in Singapore and Hong Kong to shore up investor confidence.
Seven listed Adani Group companies lost more than 60% of their market value – over $150 billion – since the release of the Hindenburg report emerged on January 24.
Shares of the group’s flagship Adani Enterprises have, however, surged more than 30% in last two days. On Wednesday, they closed almost 16% higher, bringing some cheer to devastated investors.
The Hindenburg report, being probed by India’s top court and market regulator, alleged stock manipulation and improper use of tax havens. It also flagged concerns over the group’s debt levels.
Adani, however, rejected all allegations and denied any wrongdoing.
- Reuters, with additional editing by Vishakha Saxena
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