Adani Group gets financial support from three Japanese banks: Report

Multinational conglomerate Adani Group has received financial assurances from three Japanese banks - Mitsubishi UFJ Financial Group, Sumitomo Mitsui Banking and Mizuho Financial Group, reported Financial Express citing sources.

Earlier, these three banks were not lenders to the group and as the group embarks on a series of expansion plans, their financial support will include loans for new projects and refinancing of high-cost debts, the report suggests. After a January report by Hindenburg Research which eroded the group’s market capitalisation, the assurances came as a result to the group’s investor roadshows held across Asia and Europe to win back trust.

According to Financial Express report, existing lenders, including Standard Chartered and Barclays too have reaffirmed their confidence in the group’s operations. All banks have pledged support to refinance bonds maturing in FY24 and FY26, and existing & new debt. Bonds worth $4 billion will be maturing in FY24 and FY26.

 

GQG Partners with Rs 15,446 crore investments in Adani Enterprises (AEL), Adani Green Energy, Adani Ports and Adani Total Gas is also expected to further invest in the Gautam Adani-owned companies.

Adani Group companies are planning to execute large-scale projects across infrastructure and utility space, and need cash flows for these, while the group is also aiming to raise about $800 million for new green energy projects. 
 

"The company is expecting growth from its core infrastructure business, allied businesses such as cement and FMCG among others," said the group during the roadshows.

As of FY23, the group’s debt stood at Rs 2.27 trillion, out of which 39 per cent was in the form of bonds and 61 per cent was in the form of loans (29 per cent from international banks and 32 per cent from Indian banks and NBFCs). The gross value of the group’s assets was at Rs 3.91 trillion.

At the investor shows convened to gain back their confidence, the Adani Group was represented by group CFO Jugeshinder Singh and head of corporate finance Anupam Misra. They reached out to the bondholders, bankers, investors and foreign institutional investors and shareholders.