• About Us
  • Contact Us
Tuesday, March 21, 2023
  • Login
  • Register
B2B Infomedia
No Result
View All Result
  • Home
  • Fintech
    OpenText Buys Micro Focus

    OpenText Buys Micro Focus

    SUCCESSFUL CONCLUSION OF 14TH NBFC & FINTECH CONCLAVE & AWARDS 2023 WHERE CHIEF GUEST RAMESH IYER DELIVERED INAUGURAL ADDRESS

    SUCCESSFUL CONCLUSION OF 14TH NBFC & FINTECH CONCLAVE & AWARDS 2023 WHERE CHIEF GUEST RAMESH IYER DELIVERED INAUGURAL ADDRESS

    PayU reports over 50% jump in revenue, clocks net profit of Rs 126 crore

    Personal loans account for 96% of all fintech lendings, mostly below Rs 5,000: Report

    Decentro sets up operations in Singapore, appoints Wingpay’s Saksham Shubham as business head for SE Asia

    Decentro sets up operations in Singapore, appoints Wingpay’s Saksham Shubham as business head for SE Asia

    In a first for India, Paytm Payments Bank launches UPI LITE feature

    In a first for India, Paytm Payments Bank launches UPI LITE feature

    5 more banks to join digital rupee pilot in 9 more cities soon

    Goldman Sachs leads India fintech funding while deals dry up

  • BFSI
    RBI keeps close watch on Credit Suisse crisis

    Credit Suisse’s discounted sale a signal for all bankers: Kotak

    Dr. Bhagwat Karad launches a book on Cyber Security

    Dr. Bhagwat Karad launches a book on Cyber Security

    LIC increases stake in Capri Global to 9%, buying 2% more at Rs 257 crore

    FSIB to soon start selection process for new LIC chairman

    Bank of Baroda says reduced exposure to Adani Group in two years, no concern on asset quality

    Bank of Baroda Increases Interest Rates on Retail Term Deposits

    Banks set to pilot dollar clearing and settlement at IFSC

    Banks set to pilot dollar clearing and settlement at IFSC

    Bank crisis abroad won’t hit India’s macro stability: DEA Secy Ajay Seth

    Bank crisis abroad won’t hit India’s macro stability: DEA Secy Ajay Seth

  • Education
    Education ministry sets up panel to strengthen assessment, accreditation of higher educational institutions

    National University of Singapore’s Multi-disciplinary Master’s Programs to Equip Learners with Skills for Industry 4.0

    IIM Ahmedabad rolls out open learning platform for students and professionals

    IIM Ahmedabad rolls out open learning platform for students and professionals

    Uttar Pradesh signs MoU with Tata Technologies to upgrade 150 state-run ITIs to prepare youth for industry 4.0

    Uttar Pradesh signs MoU with Tata Technologies to upgrade 150 state-run ITIs to prepare youth for industry 4.0

    Entry of foreign varsities in India will lead to healthy competition: Private Universities’ VCs

    Digital university to reduce cost of higher, skill education drastically in India: Union Minister Pradhan

    Atal Bihari Vajpayee General Scholarship Scheme: Registrations begins, check for more details

    Atal Bihari Vajpayee General Scholarship Scheme: Registrations begins, check for more details

    Increase in SC, ST and OBC students enrolment in higher education institutions: AISHE 2020-21

    Central university students can enroll for 2 courses together from new academic year

  • Enterprise
    Bank of Baroda says reduced exposure to Adani Group in two years, no concern on asset quality

    Bank of Baroda Increases Interest Rates on Retail Term Deposits

    Banks set to pilot dollar clearing and settlement at IFSC

    Banks set to pilot dollar clearing and settlement at IFSC

    Bank crisis abroad won’t hit India’s macro stability: DEA Secy Ajay Seth

    Bank crisis abroad won’t hit India’s macro stability: DEA Secy Ajay Seth

    HDFC Bank acquires 7.75 per cent stake in fintech start-up Mintoak for Rs 31.1 crore

    HDFC-HDFC Bank merger gets NCLT approval

    No PSU norms for IDBI Bank after stake sale, clarifies govt

    DIPAM rubbishes media reports of IDBI Bank disinvestment deferment

    IRDA directive to shun brokers for gilt trades baffles insurers

    NCLT approves Welspun takeover of Sintex BAPL

  • Technology
    MeitY may soon integrate ChatGPT with WhatsApp for key government schemes

    Snapchat to gain a ChatGPT-powered AI chatbot soon

    Elon Musk recruits team to develop OpenAI’s ChatGPT rival

    Elon Musk recruits team to develop OpenAI’s ChatGPT rival

    MeitY may soon integrate ChatGPT with WhatsApp for key government schemes

    ChatGPT as lawyer helps design agency recover $109,500 from client who ghosted

    Uttar Pradesh signs MoU with Tata Technologies to upgrade 150 state-run ITIs to prepare youth for industry 4.0

    Uttar Pradesh signs MoU with Tata Technologies to upgrade 150 state-run ITIs to prepare youth for industry 4.0

    MeitY may soon integrate ChatGPT with WhatsApp for key government schemes

    MeitY may soon integrate ChatGPT with WhatsApp for key government schemes

    India records over 23 billion digital payments worth Rs 38.3 lakh crore in Q3

    Digital credit to be rolled out this year; NRIs in 10 countries to get UPI service

  • Events
    • Upcoming Events
    • Past Events
  • Home
  • Fintech
    OpenText Buys Micro Focus

    OpenText Buys Micro Focus

    SUCCESSFUL CONCLUSION OF 14TH NBFC & FINTECH CONCLAVE & AWARDS 2023 WHERE CHIEF GUEST RAMESH IYER DELIVERED INAUGURAL ADDRESS

    SUCCESSFUL CONCLUSION OF 14TH NBFC & FINTECH CONCLAVE & AWARDS 2023 WHERE CHIEF GUEST RAMESH IYER DELIVERED INAUGURAL ADDRESS

    PayU reports over 50% jump in revenue, clocks net profit of Rs 126 crore

    Personal loans account for 96% of all fintech lendings, mostly below Rs 5,000: Report

    Decentro sets up operations in Singapore, appoints Wingpay’s Saksham Shubham as business head for SE Asia

    Decentro sets up operations in Singapore, appoints Wingpay’s Saksham Shubham as business head for SE Asia

    In a first for India, Paytm Payments Bank launches UPI LITE feature

    In a first for India, Paytm Payments Bank launches UPI LITE feature

    5 more banks to join digital rupee pilot in 9 more cities soon

    Goldman Sachs leads India fintech funding while deals dry up

  • BFSI
    RBI keeps close watch on Credit Suisse crisis

    Credit Suisse’s discounted sale a signal for all bankers: Kotak

    Dr. Bhagwat Karad launches a book on Cyber Security

    Dr. Bhagwat Karad launches a book on Cyber Security

    LIC increases stake in Capri Global to 9%, buying 2% more at Rs 257 crore

    FSIB to soon start selection process for new LIC chairman

    Bank of Baroda says reduced exposure to Adani Group in two years, no concern on asset quality

    Bank of Baroda Increases Interest Rates on Retail Term Deposits

    Banks set to pilot dollar clearing and settlement at IFSC

    Banks set to pilot dollar clearing and settlement at IFSC

    Bank crisis abroad won’t hit India’s macro stability: DEA Secy Ajay Seth

    Bank crisis abroad won’t hit India’s macro stability: DEA Secy Ajay Seth

  • Education
    Education ministry sets up panel to strengthen assessment, accreditation of higher educational institutions

    National University of Singapore’s Multi-disciplinary Master’s Programs to Equip Learners with Skills for Industry 4.0

    IIM Ahmedabad rolls out open learning platform for students and professionals

    IIM Ahmedabad rolls out open learning platform for students and professionals

    Uttar Pradesh signs MoU with Tata Technologies to upgrade 150 state-run ITIs to prepare youth for industry 4.0

    Uttar Pradesh signs MoU with Tata Technologies to upgrade 150 state-run ITIs to prepare youth for industry 4.0

    Entry of foreign varsities in India will lead to healthy competition: Private Universities’ VCs

    Digital university to reduce cost of higher, skill education drastically in India: Union Minister Pradhan

    Atal Bihari Vajpayee General Scholarship Scheme: Registrations begins, check for more details

    Atal Bihari Vajpayee General Scholarship Scheme: Registrations begins, check for more details

    Increase in SC, ST and OBC students enrolment in higher education institutions: AISHE 2020-21

    Central university students can enroll for 2 courses together from new academic year

  • Enterprise
    Bank of Baroda says reduced exposure to Adani Group in two years, no concern on asset quality

    Bank of Baroda Increases Interest Rates on Retail Term Deposits

    Banks set to pilot dollar clearing and settlement at IFSC

    Banks set to pilot dollar clearing and settlement at IFSC

    Bank crisis abroad won’t hit India’s macro stability: DEA Secy Ajay Seth

    Bank crisis abroad won’t hit India’s macro stability: DEA Secy Ajay Seth

    HDFC Bank acquires 7.75 per cent stake in fintech start-up Mintoak for Rs 31.1 crore

    HDFC-HDFC Bank merger gets NCLT approval

    No PSU norms for IDBI Bank after stake sale, clarifies govt

    DIPAM rubbishes media reports of IDBI Bank disinvestment deferment

    IRDA directive to shun brokers for gilt trades baffles insurers

    NCLT approves Welspun takeover of Sintex BAPL

  • Technology
    MeitY may soon integrate ChatGPT with WhatsApp for key government schemes

    Snapchat to gain a ChatGPT-powered AI chatbot soon

    Elon Musk recruits team to develop OpenAI’s ChatGPT rival

    Elon Musk recruits team to develop OpenAI’s ChatGPT rival

    MeitY may soon integrate ChatGPT with WhatsApp for key government schemes

    ChatGPT as lawyer helps design agency recover $109,500 from client who ghosted

    Uttar Pradesh signs MoU with Tata Technologies to upgrade 150 state-run ITIs to prepare youth for industry 4.0

    Uttar Pradesh signs MoU with Tata Technologies to upgrade 150 state-run ITIs to prepare youth for industry 4.0

    MeitY may soon integrate ChatGPT with WhatsApp for key government schemes

    MeitY may soon integrate ChatGPT with WhatsApp for key government schemes

    India records over 23 billion digital payments worth Rs 38.3 lakh crore in Q3

    Digital credit to be rolled out this year; NRIs in 10 countries to get UPI service

  • Events
    • Upcoming Events
    • Past Events
No Result
View All Result
B2B Infomedia
No Result
View All Result
Home Enterprise

Adani credit flashes warnings after group gorged on cheap debt

Prashant Dwivedi by Prashant Dwivedi
February 17, 2023
in BFSI, Enterprise
A A
0
Bonds out, Adani Group looks for new ways to refinance ACC, Ambuja M&A loans
0
SHARES
1
VIEWS
Share on FacebookShare on Twitter

Gautam Adani’s sprawling corporate empire embraced the era of cheap debt like few others. But with yields spiking and access to overseas financing suddenly in question, investors and analysts say the borrowing blitz has made it all the more vulnerable amid its worst crisis ever.

The conglomerate, with businesses stretching from ports to renewable energy, tapped international bond buyers for more than $8 billion in recent years, while also turning to global banks for at least as much in foreign-currency loans, data compiled by Bloomberg show. After its borrowing costs surged in response to allegations of fraud and stock manipulation by shortseller Hindenburg Research, some are already warning that Adani’s more highly-leveraged companies have little capacity to absorb higher interest rates.

“The group will have to work, over time, to repair some of the damage caused by these issues,” said Abdul Kadir Hussain, head of fixed-income asset management at Dubai-based Arqaam Capital. “Emerging-market credit investors are very sensitive to issues surrounding transparency and governance.”

Adani has hired banks to set up meetings with fixed-income investors beginning Thursday, according to a person familiar with the matter. A spokesperson didn’t respond to a Bloomberg request for comment on whether the group is seeking to sell dollar debt in the near future, or its strategy for any refinancing dollar debt that matures by the end of 2024.

The billionaire himself said in a video this month the track record on debt payments is ‘impeccable.’ In a release this week, the Indian conglomerate said it faced no material refinancing risk or near-term liquidity requirements as there’s no near-term significant debt maturity. The group’s debt service coverage ratio was 2.03 times at the end of September, while its cash balance rose to $3.9 billion as of Dec. 31, it said.

Attention is shifting toward the Adani Group’s debt pile following a stock rout that’s wiped out more than $120 billion in market value.

Moody’s Investors Service last week cut the outlook on Adani Green Energy Ltd.’s Ba3 rating to negative from stable, noting “significant” refinancing needs of about $2.7 billion in the year ending March 2025, and “limited headroom in its credit metrics to manage any material increase in funding costs.”

That followed revisions to the outlooks of Adani Ports & Special Economic Zone Ltd. and Adani Electricity Mumbai Ltd. by S&P Global Ratings, which warned that “new investigations and negative market sentiment may lead to increased cost of capital and reduce funding access.”

Leonard Law, a senior credit analyst at Lucror Analytics, said that a “severe deterioration” in financing access for one Adani Group entity risks sparking a negative cascade for the entire conglomerate.

“A liquidity crunch at any one of the entities may have a ripple effect on financing access for the wider group,” he wrote in a recent report to clients.

While such fears added to a rout in the group’s bonds after the Hindenburg report late last month, the notes have since pared losses, with many now trading in the 70 cent range. The rebound came after banks including Goldman Sachs Group Inc. and JPMorgan Chase & Co. told clients that bonds related to Adani’s business empire offered value in part due to the strength of certain underlying assets.

Still, in a sign of how much funding costs have surged, the yield on Adani Green’s September 2024 bond is indicated at about 24%.

Oaktree Capital Management, one of the world’s largest opportunistic debt firms, and Davidson Kempner Capital Management were among those buying the debt in recent weeks, Bloomberg reported.

Adani Group companies generate free cash flow, and if necessary the conglomerate can divest assets such as its cement operations to improve its cash position even further, said Chakri Lokapriya, chief investment officer at TCG Asset Management Co. in Mumbai.

Debt Surge

Ironically, Adani, a self-made billionaire who describes his meteoric rise in terms of India’s own economic growth, led his group to a growing reliance on a source of funding that the Indian government itself has long avoided: dollar bonds.

India has no outstanding dollar notes, unlike many of its Asian peers including China, Indonesia and South Korea.

Enter Adani Group, which became one of the country’s biggest source of dollar bond issuance, sating demand from global money managers desperate for exposure to the nation’s growth potential.

Businesses tied to ports, power generation, electricity transmission and renewable energy were among the most prolific borrowers, and at least 200 financial institutions around the world — including the likes of BlackRock Inc., the world’s biggest asset manager — have had exposure to Adani Group’s dollar debt, underscoring the stakes for global investors.

Adani Green Energy in particular leaned heavily into debt financing, with gross debt bulging to about 11 times earnings before interest, taxes, depreciation and amortization in the 12 months through September, according to Bloomberg News calculations based on data from the group. That’s more than for any other listed Adani entity.

Gross debt was about 5.8 times Ebitda for Adani Transmission Ltd., and 4.9 times at flagship Adani Enterprises Ltd., data for the same period show. Conversely, combined assets were about 1.9 times net debt for seven of the conglomerate’s key businesses including ports, cement and power, according to Adani figures.

While the group faces minimal maturities this year, it has over $2 billion of bonds and a $4.5 billion bridge loan maturing by the end of next year, according to data compiled by Bloomberg. Adani plans to prepay a $500 million chunk of the loan due next month after some banks balked at refinancing the debt, Bloomberg previously reported.

“The Adani saga is so non-transparent that anything can happen,” said Lutz Roehmeyer, chief investment officer at Berlin-based Capitulum Asset Management. “Governance is important, and more so for family businesses that grow out of nowhere.”

0Like
0Dislike
50% LikesVS
50% Dislikes
Source: Economic Times
Tags: Adani GroupbfsiEnterprisefinancials
Previous Post

IL&FS probe: PMLA court grants bail to ABG Shipyard chairman Rishi Aggarwal, wife

Next Post

60 pc private insurers see rapid rise in fraud: Deloitte survey

Prashant Dwivedi

Prashant Dwivedi

Related Posts

RBI keeps close watch on Credit Suisse crisis
BFSI

Credit Suisse’s discounted sale a signal for all bankers: Kotak

March 21, 2023
Dr. Bhagwat Karad launches a book on Cyber Security
BFSI

Dr. Bhagwat Karad launches a book on Cyber Security

March 20, 2023
LIC increases stake in Capri Global to 9%, buying 2% more at Rs 257 crore
BFSI

FSIB to soon start selection process for new LIC chairman

March 20, 2023
Next Post
60 pc private insurers see rapid rise in fraud: Deloitte survey

60 pc private insurers see rapid rise in fraud: Deloitte survey

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

14th NBFC & FINTECH CONCLAVE & AWARDS 2023
Subscribe to our Newsletter
johnsmith@example.com

Recent News

RBI keeps close watch on Credit Suisse crisis

Credit Suisse’s discounted sale a signal for all bankers: Kotak

March 21, 2023
Dr. Bhagwat Karad launches a book on Cyber Security

Dr. Bhagwat Karad launches a book on Cyber Security

March 20, 2023
Education ministry sets up panel to strengthen assessment, accreditation of higher educational institutions

National University of Singapore’s Multi-disciplinary Master’s Programs to Equip Learners with Skills for Industry 4.0

March 20, 2023
LIC increases stake in Capri Global to 9%, buying 2% more at Rs 257 crore

FSIB to soon start selection process for new LIC chairman

March 20, 2023
B2B Infomedia

Be To Be Infomedia Pvt. Ltd. represents the inovative platfrom to the clients and widely recognised as one of the ponier networking platfrom with the team of young, creative, dynamic & dedicated professionals.

Quick Links

  • Home
  • About Us
  • Contact Us
  • Privacy Policy
  • Refund Policy
  • Terms and Conditions

All News

  • BFSI
  • Edtech
  • Education
  • Enterprise
  • Financial Inclusion
  • Fintech
  • Pharma
  • Startup
  • Technology
Subscribe to our Newsletter
johnsmith@example.com
  • About Us
  • Contact Us

© 2022 b2binfomedia - Designed & Maintain by hscreativehub.com.

No Result
View All Result
  • Home
  • About Us
  • Upcoming Events
  • Fintech
  • BFSI
  • Education
  • Technology
  • Startup
  • Enterprise
  • Pharma
  • Contact Us
  • Login
  • Sign Up

© 2022 b2binfomedia - Designed & Maintain by hscreativehub.com.

Welcome Back!

Sign In with Google
OR

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Sign Up with Google
OR

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In