India's Adani in talks for $400m debt against Australian coal port assets

As of Monday, the conglomerate has seen about $147 billion wiped off its market value in the aftermath of a short-seller report

Published : 27 Feb 2023, 08:44 AM
Updated : 27 Feb 2023, 08:44 AM

Adani Group is in talks with global credit funds to raise up to $400 million in debt against some of its assets in Australia, the Economic Times reported on Monday, as group shares continued to bleed in the aftermath of a short-seller report.

The Indian ports-to-power conglomerate operates the Carmichael coal mine, the North Queensland Export Terminal (NXQT), as well as a solar farm in Australia.

The NXQT, a major port for Queensland coal exports controlled by the Adani family trust, is being considered to raise funds to repay promoter debt, the Economic Times report said, citing sources aware of the fund-raising.

Adani did not immediately respond to Reuters' request for comment.

As of Monday, the conglomerate led by billionaire Gautam Adani has seen about $147 billion wiped off its market value after Hindenburg Research accused it on Jan 24 of improper use of offshore tax havens and stock manipulation.

The group has rejected all allegations of wrongdoing.

Adani Enterprises, the flagship firm of Adani group, slid as much as 8.5% on Monday, and has lost around 65% since the Hindenburg report.

Australia's corporate regulator earlier this month said it will review the report that has flagged a wide range of concerns about the group led by billionaire Gautam Adani.

The Indian conglomerate is in discussions with several large high-yield global credit funds and so far received two indicative term sheets from potential lenders which include hedge fund Farallon Capital Management, ET reported.

Farallon Capital declined to comment.

Meanwhile, Adani is holding fixed-income roadshows this week in Asia, as the conglomerate tries to shore up investor confidence.