The Adani Group on Monday said it has repaid loans amounting $2.65 billion to complete a prepayment programme to cut overall leverage. This is seen as a measure to regain investor trust after US short seller Hindenburg Research accused the port-to-energy conglomerate of stock price manipulation.
Adani Group has repaid $2.15 billion of loans that were taken by pledging shares in the group’s listed firms and additional $700 million in loans taken for the acquisition of Ambuja Cement, it said in Credit Note released on Monday.
"The prepayment was done along with interest payment of USD 203 million," it added.
According to the credit update, the promotes sold the shares in four listed group companies to GQG Partners, a leading global investment firm, for $1.87 billion.
"The deleveraging programme testifies to the strong liquidity management and capital access at sponsor level even in volatile market conditions, supplementing the solid capital prudence adopted at all portfolio companies," Adani Group said in the credit update.
In January, Hindenburg Research released a report alleging accounting fraud and stock price manipulation at Adani Group, leading to a stock market rout that had erased around $145 billion in the group’s market value at its lowest point.
Adani Group has denied all allegations by the US-based short seller. The conglomerate has reframed its goals and prepaid some loans to appease investors.
The statement further outlined major improvements in key financial metrics – the company’s combined Net Debt to EBITDA ratio has reduced to 3.27 in FY23 from 3.81 in FY22. The run rate EBITDA increased from Rs 50,706 Crore in FY22 to Rs 66,566 Crore in FY23.
It further shows that the banking lines of Adani Group remain confident by disbursing new debt and rolling over existing lines of credit. In addition, the international and domestic rating agencies have reaffirmed their rating in all the group entities.
