Adani Group has received assurances of financial support from three Japanese banks – Mitsubishi UFJ Financial Group, Sumitomo Mitsui Banking and Mizuho Financial Group. The three banks are not current lenders to the group and the support from them will include loans for new projects and refinancing of high-cost debts, as the group embarks on a series of expansion plans. The assurances were provided at the group’s investor roadshows held across Asia and Europe to win back trust, following a January report by short-seller Hindenburg Research which led to the erosion of half the group’s market capitalisation.
Adani Group companies are executing large-scale projects across infrastructure and utility space, and need cash flows for these, while it is also in talks to raise about $800 million for new green energy projects. A series of expansion plans, including adding capacity at its cement business, were also on the anvil. The group’s debt as of March 31, 2023, stood at Rs 2.27 trillion, of which 39% was in bonds, 29% loans from
International banks and 32% with Indian banks and NBFCs. The gross value of the group’s assets was at Rs 3.91 trillion.
