Overseas banks together with Commonplace Chartered Financial institution and Citibank don’t have any plans to scale down their publicity, or cease their credit score amenities to the Adani Group firms, a number of sources stated. They’re holding the credit score strains open and funds flowing.
Although the wealth administration arms of Citibank, Commonplace Chartered and Credit score Suisse have stated that they’d not be quickly accepting bonds of Adani Group firms as collateral from their wealth shoppers, the banks themselves are able to preserve the lending strains open and even assist the corporate pay down debt, sources stated.
Of the overall debt of the group, international banks accounted for 18 p.c of debt as on the finish of 2021-22.
In response to an e-mail despatched by businessline, Commonplace Chartered Financial institution in India stated, “We don’t touch upon particular person entities or market hypothesis.” Citibank stated it will not be capable of touch upon the matter.
The consolidated gross debt of the group in 2021-22 was at ₹1.9-lakh crore, a be aware by Jefferies had stated final month. Its internet debt was ₹1.6-lakh crore, unfold throughout group firms. Many of the debt is concentrated in Adani Inexperienced Vitality, Adani Energy and Adani Ports and Particular Financial Zone. It had additionally pegged whole debt of the group to international banks at ₹33,900 crore.
Commonplace Chartered is a banker to Adani Group firms and in accordance with sources has a bigger share of loans to the group, in contrast with different international banks. Citibank has a decrease publicity and in accordance with sources inside the financial institution, the group is in good standing with the financial institution by way of mortgage repayments.
Inexperienced bonds
Aside from advancing loans within the regular course of enterprise, a number of the international banks have subscribed to inexperienced bonds issued by Adani group firms and in addition superior ESG-based loans to satisfy sustainability targets. Overseas banks had solely funded the ₹42,000-crore acquisition of Holcim’s operations in India by the Adani Group.
Sources stated that contemplating the numerous stakes that international banks have by way of their debt, they must defend their pursuits to make sure that the group stays solvent and has sufficient liquidity to satisfy its obligations.
