Adani Group's First Offshore Borrowing Since Hindenburg

AdaniConneX Private Ltd, an Adani group company is in a join venture with EdgeConneX is in talks with half a dozen banks for a loan of about $220 million, which would be the conglomerate's first offshore borrowing since it was targeted by shortseller Hindenburg Research as per Moneycontrol report.

As per the report, data center provider AdaniConneX Private Ltd. would use the money for capital expenditure, for a five year term, under discussion, according to an anonymous source, who did not wished to be named, as the matter is private. The loan would be signed in the next few weeks. The person familiar with the matter and representative for Adani Group declined to comment.

Adani Enterprises Ltd had to shelve its plan to raise as much as 10 billion rupees ($121 million) in January, it would have been its first public sale of bonds. But because of the US-based Hindenburg accusatory report, the conglomerate has been forced to reevaluate its ambitions, While the group denied the allegations, its stock and bond prices slumped.

According to report "the data compiled by Bloomberg show no US dollar bonds and loans taken out by Adani Green Energy Ltd., Adani Ports and Special Economic Zone Ltd. and Adani Enterprises Ltd. since the report was released."

Further, it was mentioned that Adani Group executives had met Us investors last month as part of
its plans to market privately placed bonds of as much as $1 billion in two tranches this year, Bloomberg also reported about it, citing people familiar with the matter.