Credit Suisse lends Rs800 crore to Adani Properties

10 Aug 2022 , 10:55 AM

According to Economic Times, businessman Gautam Adani’s privately held company Adani Properties (APPL) this week borrowed Rs800 crore in loans from Credit Suisse to finance growth and acquisition in the real estate sector.

Additionally, in recent months, the firm has received funding from a JPMorgan Chase affiliate and a Barclays Merchant Bank affiliate. This fiscal year, beginning in April, APPL, which raises capital for Adani Group firms, borrowed Rs2,525 crore for terms ranging from one to three years at an average annual rate of 15%.

According to the sources, all of the money was generated through the sale of zero-coupon bonds using shares of the SB Adani Family Trust, which owns the promoter shares of the publicly traded Adani Group firms.

In August, Credit Suisse contributed Rs800 crore in three tranches, and in April, it contributed Rs550 crore in two tranches. Bonds with April 30, 2025, maturity date were purchased for Rs425 crore by Barclays and Rs750 crore by Copthall Mauritius Investment, a JPMorgan unit, in four payments in April.

Bonds issued by Adani Properties are rated by the rating agency Infomerics as IVR AA (CE) with a stable outlook. According to Infomerics, Adani Properties reported a profit after tax of Rs4,793 crore for the fiscal year 2021 as opposed to a deficit of Rs124 crore the previous year. As of March 31, 2022, it owed a total of Rs28,617 crore as opposed to Rs21,088 crore. According to a statement released by Infomerics Ratings on August 8, the total debt raised by the Adani Group by pledging its shares was at Rs8,841 crore as of May 31, 2022, which represents 1.1% of the promoter holdings in the group’s listed firms.