Adani Group Repays $2.65 Billion in Loans, Reduces Overall Leverage
The loans that were repaid include:
- A margin-linked share-backed financing of $2.15 billion, which the group had paid off by March 12, 2021, before its March 31 deadline. The group had pledged shares in its listed firms to secure this loan.
- A loan of $500 million that was taken for the acquisition of Ambuja Cement, a leading cement manufacturer in India. The group had also paid off $203 million of interest on this loan in March 2021.
The group also said that it had completed the sale of shares in four of its listed entities to GQG Partners, a global investment firm, for $1.87 billion (Rs 15,446 crore). This was part of the group's strategy to raise capital and diversify its shareholder base.
The Adani Group said that the deleveraging programme testifies to its strong liquidity management and capital access even in volatile market conditions. It also said that it has adopted solid capital prudence at all its portfolio companies, which are mainly focused on core infrastructure sectors such as ports, airports, power, renewables, gas, and mining.
The group highlighted some of the key improvements in its financial performance and metrics for the fiscal year 2020-21:
- The portfolio's combined net debt to EBITDA ratio decreased from 3.81 in FY20 to 3.27 in FY21.
- The run rate EBITDA surged from Rs 50,706 crore in FY20 to Rs 66,566 crore in FY21.
- The gross assets increased to Rs 4.23 lakh crore, up by Rs 1.06 lakh crore.
- The gross asset/net debt cover improved to 2.26x in FY21 from 1.98x in FY20.
- The cash balance increased by 41.5% to Rs 40,351 crore from Rs 28,519 crore.
- The debt service cover ratio (DSCR) improved to 2.02x in FY21 from 1.47x in FY20.
The group also said that it continues to enjoy the confidence and support of its banking partners, who have disbursed new debt and rolled over existing lines of credit. Moreover, both domestic and international rating agencies have reaffirmed their ratings for all the group companies.
The Adani Group's debt profile has been under scrutiny since January 2021, when a US-based short-seller Hindenburg Research published a report alleging accounting fraud and stock price manipulation at the group. The report triggered a sharp fall in the stock prices of the group's listed companies and a surge in the yields on its bonds.
The group has denied all the allegations by Hindenburg and has defended its corporate governance and transparency standards. It has also taken legal action against the short-seller for defamation and damages.
The group has said that it is committed to creating long-term value for its stakeholders and contributing to India's economic growth and development through its core infrastructure portfolio.
Source
(1) Adani Group repays $2.65 billion loans to complete prepayment programme. https://www.livemint.com/market/stock-market-news/adani-group-repays-2-15-billion-loans-to-complete-prepayment-programme-11685973959542.html.
(2) Adani Group Repays $2.65 Billion Loans; Completes Prepayment Ahead Of March 31 Deadline. https://www.outlookindia.com/business/adani-group-repays-265-billion-loans-completes-prepayment-ahead-of-march-31-deadline-news-292354.
(3) Adani Group repays loans worth $2.65 bn. https://www.tribuneindia.com/news/business/adani-group-repays-loans-worth-2-65-bn-514683.
(4) Adani Group repays loans worth $2.65 billion - The Economic Times. https://economictimes.indiatimes.com/markets/stocks/news/adani-group-repays-loans-worth-2-65-billion/articleshow/100778737.cms
(5) Adani Group repays loans worth $2.65 billion to complete prepayment .... https://energy.economictimes.indiatimes.com/news/renewable/adani-group-repays-loans-worth-2-65-billion-to-complete-prepayment-programme/100779453.
What all does Adani Group own?
Founded by Gautam Adani in 1988 as a commodity trading business, the Group's businesses include port management, electric power generation and transmission, renewable energy, mining, airport operations, natural gas, food processing and infrastructure.
Who is the Adani Group CEO?
Mr Gautam Adani is the Founder and Chairman of the Adani Group, which ranks among the top 3 industrial conglomerates in India.
How many brands are there in Adani Group?
Adani Group is a diversified organisation in India comprising 7 publicly traded companies. It has created a world class transport and utility infrastructure portfolio that has a pan-India presence. Adani Group is headquartered in Ahmedabad, in the state of Gujarat, India.
Who invested in Adani?
Rajiv Jain, co-founder of GQG that invested Rs 15,446 cr in Adani Group, is one of Forbes' new billionaires.
