Adani repays $3 bn in pledges, bonds

The Adani group paid back at least $3 billion in the March quarter, lowering promoter-group pledges and settling bonds with three domestic mutual funds to allay the concerns of investors and creditors, two people with direct knowledge of the matter said.

- Anirudh Laskar

 

“The proceeds from the $1.88 billion equity funding by GQG Partners and an additional $1 billion from promoter-group funding were used to release a substantial part of the promoters’ pledges and repay bonds early," one of the two people said, requesting anonymity.

Regulatory filings last week showed that the embattled group spent at least $2.54 billion to cut promoters’ pledges in four of the nine listed Adani group companies—Adani Enterprises Ltd, Adani Ports and SEZ Ltd, Adani Transmission Ltd, and Adani Green Energy Ltd.

“This is possibly the largest amount ever spent in a single quarter by an Indian group to lower the promoter pledge," said a veteran investment banker.

Additionally, according to the two people cited above and copies of internal notes reviewed by Mint, the group repaid at least ₹3,650 crore worth of commercial papers (CPs) that were sold to SBI Mutual Fund ( ₹2,750 crore), Aditya Birla Sun Life Mutual Fund ( ₹500 crore) and HDFC Mutual Fund ( ₹450 crore) during the March quarter.