The Adani group, whose mostly debt-fueled breakneck expansion saw gross debt doubling in four years, has almost USD 2 billion worth of foreign-currency bonds coming up for repayment in 2024, according to a presentation the conglomerate made to investors.
The company borrowed over USD 10 billion in foreign currency bonds between July 2015 and 2022 across group companies. Of this, USD 1.15 billion of bonds matured in 2020 and 2022. There are no maturities in 2023 but three issuances - USD 650 million by the ports arm APSEZ and two of renewable energy unit Adani Green Energy Ltd (USD 750 million and and USD 500 million - are due for payment in 2024. Adani group management, including group chief financial officer Jugeshinder Singh, last month held roadshows in Singapore and Hong Kong to reassure investors that the company's finances are under control.
These are to be extended to Dubai, London and the US from March 7 to 15. Executives told investors they will address upcoming debt maturities including by potentially offering private placement notes and using cash from operations. Adani group's gross debt has grown from Rs 1.11 lakh crore in 2019 to Rs 2.21 lakh crore in 2023, according to the presentation made to investors last month. After including cash, the net debt was Rs 1.89 lakh crore in 2023. There are no foreign currency bond maturities in 2025.
Adani Group is struggling after Hindenburg released a report in late January, accusing the conglomerate of stock manipulation and other frauds. This wiped out more than Rs12 lakh crore of the market value of the Gautam Adani-backed group. All ten Adani stocks were in shambles hitting fresh lows, freezing at lower circuits, and erasing billions of wealth.
Currently, the Supreme Court has asked Sebi to investigate Adani Group to check whether there has been any stock manipulation or other allegations and to come up with measures to safeguard investors.
ICRA downgrades rating outlook to NEGATIVE for Adani Ports, Adani Total Gas