The logo of the Adani Group can be seen on one of its buildings in Ahmedabad. file | Photo Credit: Reuters
Adani Group Chairman Gautam Adani faced a margin call of over $500 million on a $1.1 billion share-backed loan, prompting him to repay the loan in full. financial Times reported citing four people with direct knowledge of the matter.
The repayments were made to avoid any damage to investor confidence, which has been shaken by allegations of fraud by short-selling firm Hindenburg, according to reports on Wednesday.
An Adani spokesman did not immediately respond to a Reuters request for comment outside business hours.
Bloomberg News reported that the Adani group also plans to repay a $500 million loan next month to a consortium of banks, including Barclays, Standard Chartered and Deutsche Bank.
Bloomberg News said the consortium of banks had loaned $4.5 billion to Adani to finance the purchase of Holcim Ltd Cement’s assets last year and a portion of the loan is due on March 9.
The group was in talks with banks to refinance that part of the loan, but has decided to prepay it. bloomberg news It has been said in the report that Adani Group’s talks with the banks have not stopped.
Adani’s flagship firm Adani Enterprises closed its $2.5 billion share sale last week as criticisms of short-seller Hindenburg wiped billions off the value of the Indian tycoon’s shares.