Adani Faced Margin Call On $1.1 Bn Loan Before Repaying In Full: Report

Chairman faced a margin call of more than $500 million on a $1.1 billion share-backed loan, prompting him to repay the whole debt, the Financial Times reported, citing four people with direct knowledge of the matter.

The repayment was meant to avoid any further damage to investor confidence, which has been rocked by allegations of fraud by short-selling firm Hindenburg, according to the report on Wednesday.

An Adani spokesperson did not immediately respond to a Reuters request for comment outside business hours.

also plans to prepay a $500 million loan due next month to a group of banks that includes Barclays, Standard Chartered and Deutsche Bank, Bloomberg reported.

The group of banks lent Adani $4.5 billion to finance the purchase of Holcim Ltd cement assets last year and a portion of the loan is due March 9, Bloomberg said.

The conglomerate had been in talks with banks to refinance that part of the loan but has decided to prepay it, Bloomberg reported, adding that Adani Group's discussions with the banks have not stalled.

Adani's flagship firm Adani Enterprises called off its $2.5 billion share sale last week as a rout sparked by short-seller Hindenburg's criticisms wiped billions off the value of the Indian tycoon's stocks.

(Reporting by Juby Babu in Bengaluru; Editing by Anil D'Silva and Shounak Dasgupta)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

RECENT NEWS

HSBC Swings The Axe At UK Wealth In An AI Push

HSBC is preparing deep job cuts across its UK wealth management arm. It plans to cut about half of its management and sp... Read more

Kraken's Owner Buys A Bank: The Lines Are Blurring

Payward, the parent company of the crypto exchange Kraken, has agreed to buy a European bank. It would be the first digi... Read more

Revoluts Australian Banking Licence Game Changer

Revolut has spent much of its life insisting that it is more than a bank. In Australia, it has now decided that becoming... Read more

The AI Bank Is Coming, But Who Controls The Risk?

Artificial intelligence is no longer something banks discuss as a distant possibility. It is already working behind the ... Read more

ClearBank UK Profit Leads To European Growth

ClearBank has spent much of the past decade building the technology and regulatory infrastructure needed to challenge so... Read more

Bank Of London Continues To Rebuild

ClearBank’s progress shows that modern clearing and banking infrastructure can become a sizeable and profitable busine... Read more