Allegations of accounting fraud in the Hindenburg report have damaged Adani's credibility in the market triggering a sell-off of its stocks, amid concerns about its ability to repay debts. To reassure investors, Adani has been prepaying loans well in advance and has also launched a roadshow across the globe. The firm with a debt pile of $41.1 billion, has now informed creditors that a sovereign wealth fund has agreed to lend $3 billion to the ports to power conglomerate.
Sources have also added that the loan can be extended to $5 billion, as the firm struggles to repair the damage done to its credit profile. Having cancelled an FPO subscribed by family offices of unnamed ultra high net worth investors, the Adani Group hasn't disclosed the identity of the sovereign fund. The funding comes a day after Adani CFO Jugshinder Singh had stated that the firm has no plans of refinancing its debt.
The Adani Group has also received a debt commitment of $800 million, which it will use for refinancing a $750 million bond payment due in September this year by Adani Green Energy. Reports by ET now suggest that the group has standing credit facility from multiple banks to fund infrastructure projects.
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