Adani Joint Venture In Talks For First Dollar-Denominated Loan Since Hindenburg: Report

Adani Group's joint venture with data centre firm EdgeConneX is in talks with around six banks for first loan in dollar term since Hindenburg Research levelled allegations of fraud, stock price manipulation and improper use of tax haven, news agency Bloomberg reported citing anonymous people aware of the matter.

AdaniConneX Private Ltd is in talks with at least six banks for loan of around $220 million and would use the proceeds from loan for capital expenditure. The tenor of loan is expected to of five years and will be signed in the next few weeks, Bloomberg report noted.

Data compiled by Bloomberg showed that no US dollar bond or loan was taken by Adani Green Energy Ltd., Adani Ports and Special Economic Zone Ltd. and Adani Enterprises Ltd. since Hindenburg report was released in January. 

Adani Group executives met US investors as part of its plans to market privately placed bonds of as much as $1 billion in two tranches this year, Bloomberg reported last month, citing people familiar with the matter

The Hindenburg Research report, that wiped out as much as Rs 12 lakh crore from Adani Group’s market capitalization, was prepared after two years of research and investigation by the US-based short seller. In an official tweet, Hindenburg Research wrote, “Today we reveal the findings of our 2-year investigation, presenting evidence that the INR 17.8 trillion (U.S. $218 billion) Indian conglomerate Adani Group has engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades.”

The research alleged that Gautam Adani, the founder and Chairman of the Adani Group has managed to amass a net worth of nearly $120 billion, largely through stock price appreciation over the last three years. It also alleged that the group’s six key listed companies have spiked at an average of 819 per cent over the entire period.