New Delhi: Gautam Adani’s group is seeking to raise USD 1-1.5 billion to finance its new green energy project. Being the business’s biggest borrowing since the group was attacked by the US short seller company Hindenburg Research in January. The short seller made some big allegations against the Adani group alleging accounting fraud and stock price manipulation. This accusation cost the conglomerate’s market value, a loss of about USD 145 billion.
However, Adani Group denying all the allegations is focusing on a comeback strategy.
The business house has remade its ambitions and has prepaid some loans to lighten investors.
This time it will be the biggest borrowing of the business house since the January 24 Hindenburg report.
Strength of the Portfolio
According to sources, during the company’s recent roadshow across six countries, the finance leadership team of Adani met the debtors, global banks, and bond holders along with FIIs which, reinforced the strength of the portfolio and the underlying credit quality of the portfolio.
It was highlighted that no rating downgrade appeared in the aftermath of the Hindenburg report, and affirmed rating with some agencies putting few issuers on a negative outlook.
During this period, Adani portfolio companies were backed up by international banks, believing in the robust business model, cash flow and strong balance sheets.
Growth
With Adani’s debt growing to USD 27 billion over the last 5 years, its asset base has also grown to the value of USD 60 billion and its EBITDA increasing to USD 7.5 billion.
As per sources, the next big bonds worth USD 1.9 billion are due in the year 2024 with banks being comfortable about refinancing the same, given strong performance and the creditworthiness of the underlying businesses.
In the last quarter, the Adani family prepaid USD 2.65 billion of share-backed debt and Ambuja acquisition debt, resulting in deleveraging and continued investor confidence building.
