The Adani Group has assured investors that it will pay down debt worth $1.3 billion, and part of the funds will come from promoters and the rest from foreign banks, sources said.
Sources said that Adani group officials told investors during recent roadshows that they were talking to three foreign banks to raise $750-800 million that will be used to pay down bonds maturing in 2024.
Total dues
Per the payment schedule of bonds seen by businessline, there is around $2 billion worth of bonds maturing in 2024, the largest of which is Adani Green Energy’s $750-million bond payment due in September, besides the $225-million bond payment due this November. The total dues on bonds, with the last payment in 2050, is $9.3 billion.
Loans from the banks will likely be for three years with an interest rate of 7-7.5 per cent, at least 200 basis points higher than what it was before interest rates started rising globally.
Adani officials are also said to have assured investors that a bridge loan of $500 million, taken to acquire Holcim’s Indian operations, would be repaid by the promoters.
A report by Reuters said that Adani officials had also told creditors that the group has secured $3 billion worth of credit from a sovereign wealth fund. This could not be independently verified by businessline.
The beleaguered conglomerate needs funds and, led by Group Chief Financial Officer Jugeshinder Singh, senior officials are drumming up support from the global investor community.
Roadshows ahead
After meeting investors in the 3-day roadshow in Hong Kong and Singapore this week, Adani group officials are slated to conduct a roadshow in India this weekend after which they intend travelling to the US as well in the next few weeks, company officials told businessline.
“These are non-deal roadshows to keep issuers updated on all developments and assure them that everything is under control,” the official said.
The group is also looking at the possibility of raising funds through a private placement of either foreign currency convertible bonds or debentures. In fact, Adani Ports and SEZ, which has dues on its bonds of $2 billion next year and in 2027, is understood to be looking at a debenture issuance to raise ₹6,000 crore, should the need arise.
So far, the Adani Group has repaid loans worth ₹9,250 crore that were backed by promoters’ pledged shares. In addition, it has repaid dues of ₹1,500 crore on commercial papers issued to SBI Mutual Fund and Aditya Birla Mutual Fund. Another ₹1,000 crore due in March will also be paid soon.
After losing around $130 billion in wealth since January 24, shares of Adani group stocks have recouped part of those losses and in the last two days have gained around ₹75,000 crore in market capitalisation.