Adani CFO says no refinancing, capital plans at HK roadshow
By Dorothy Ma and Annabelle Droulers
(Bloomberg) — Adani Group isn’t seeking to refinance debt or inject capital, its finance chief said on the sidelines of an investor roadshow aimed at rebuilding confidence in the crisis-ridden Indian conglomerate.
Chief Financial Officer Jugeshinder Singh made the remarks in response to questions from Bloomberg News while attending investor meetings in Hong Kong, Tuesday, the second leg of an Asian tour that began in Singapore this week. Most of the group’s stocks advanced.
The three-day roadshow marks the latest effort by billionaire Gautam Adani’s group to reassure investors after US short-seller Hindenburg Research accused it of accounting fraud and stock manipulation. India’s capital market regulator is looking into allegations made by both sides against one another, according to a person with direct knowledge of the matter. The steps are not a probe, the person said.
When asked “Are you looking to refinance any debt?” on the sidelines of the Hong Kong roadshow Tuesday, Singh said: “No, we don’t have anything major at all.”
“There’s no transactions,” he added, without specifying a time frame or elaborating further.
He also said “No” in response to the question: “Are you looking to inject any capital?”
The conglomerate, with businesses stretching from ports to renewable energy, tapped international bond buyers for more than $8 billion in recent years, and its US-currency borrowing costs spiked in response to allegations of fraud and stock manipulation by Hindenburg. Adani Group has repeatedly denied the claims.
The Securities Exchange Board of India is looking into all aspects of trading in Adani Group shares and regulatory compliance, said the person, who asked not to be identified because the matter is private. A spokesperson for SEBI declined to comment. Both Hindenburg and Adani Group didn’t respond to Bloomberg’s request for comment.
In response to the market selloff triggered by the allegations, the Indian conglomerate has taken steps ranging from cutting expenses to early debt repayment that have helped its bonds recover.
Adani Green Energy Ltd.’s 2024 dollar bond surged the most in over a week on Tuesday, up 3 cents to 82 cents on the dollar at 6:31 pm in Hong Kong. That’s still short of the 95 cent level prior on Jan. 24, when the shortseller’s report was published.
Monday’s meetings with investors took place at a hotel in Singapore. Attendees were offered a presentation on topics ranging from earnings to the debt maturity profile. Executives said the group has enough money to repay debt due over the next three years in addition to an $800 million credit facility, according to attendees.
The roadshow will conclude in Hong Kong on Wednesday.
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