Adani Group prepays another $2.15 billion worth loans

13 Mar 2023 , 09:05 AM

On Sunday, the Adani Group said that it has repaid $2.15 billion in share-backed promoter loans that had been secured by pledged shares of several group firms. The promoters have now freed all their shares that they had given as collateral for loans.

The company also announced that it has paid down a further loan tranche of $500 million that was used to finance the purchase of the company’s cement assets, ACC Ltd. and Ambuja Cements, last year.

‘The promoters’ pledge to increase equity contribution is consistent with this. The promoters have invested $2.6 billion so far of the $6.6 billion total acquisition value for Ambuja and ACC ‘In a statement released late on Sunday, the group stated. The statement read, ‘The whole $2.65 billion prepayment program has been completed in less than six weeks, which attests to robust liquidity management and access to capital at sponsor level, supporting the solid capital prudence applied by all portfolio companies.

News reports claim that promoter entities of Adani Group enterprises have total exposure to margin-linked loans of close to Rs15,000 crore ($1.83 billion). Following the drop in share prices of Adani Group firms brought on by the Hindenburg Research study, more assurances were made.

The collateral for margin-linked loans is usually an underlying security, such as equity shares. The value of sanctioned loans is often less than the current market value of the pled security, which is what happens when lenders lend against these securities.

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