Adani Group makes a decision to pay off a $500 million debt
Adani Group has taken the decision to prepay the total loan to some global banks in order to purchase the Holcim Cement assets last year. According to the Bloomberg report, Adani is going to pay off a $500 million debt to a group of global banks, including Standard Chartered, Deutsche Bank, and Barclays Plc. These banks provided a $4.5 billion loan to the Adani Group to help them purchase Holcim cement assets last year.
As per the report, these banks also lent to the group including, First Abu Dhabi Bank, DBS, MUFG, Sumitomo Mitsui Banking Corp., and Mizuho.
A US-based short seller, Hindenburg Research, accused the group of fraud and share manipulation. In order to regain investors’ confidence and stop the stock market crash, Adani Group has started prepaying some of the debt. Also, Adani stated last week that the financial balance sheet of the company is healthy.
On Tuesday, he also said that they plan to repay the loan, including bonds, worth Rs.5000 crore by the next financial year. Further, he said, repayment of the total loan will improve the firm’s net debt to EBITDA ratio and make it nearer to 2.5x by March 24.
As per Adani Ports’ CEO, Karan Adani, the organization aims to achieve an EBITDA of Rs. 14,500 crores to Rs. 15,000 crores by FY24.0