Adani to have $2 Billion in Foreign Currency Bonds for Repayment in 2024

Troubled Adani Group's $2 billion foreign currency bonds are due to be repaid in 2024.

According to a presentation made by Adani Group to investors, Adani Group mainly relies on debt to promote rapid expansion. Its total debt has doubled in four years, and the group will repay foreign currency bonds worth nearly $2 billion in 2024.

The Apple-to-airports conglomerate borrowed over $10 billion in foreign currency bonds between July 2015 and 2022 across group companies. Of this, $1.15 billion in bonds will mature in 2020 and 2022.

There is no due in 2023, but there are three issuances – $650 million for ports unit APSEZ and two for renewable energy unit Adani Green Energy Ltd ($750 million and $500 million to be paid in 2024).

Adani Group management, including group Chief Financial Officer Jugeshinder Singh, held roadshows in Singapore and Hong Kong last month to reassure investors that the company’s financial position is under control. These services will be extended to Dubai, London and the US from March 7-15.

Executives told investors they would address impending debt maturities, including possibly providing private placement notes and using operating cash.

According to a presentation to investors last month, Adani Group’s total debt has grown from Rs 1.11 lakh crore in 2019 to Rs 2.21 lakh crore in 2023.

Including cash, net debt in 2023 is Rs 1.89 lakh crore. No foreign currency bonds are due in 2025, but a $1 billion repayment is due in 2026.

A month after a damning report by a US short-seller wiped $135 billion off the market value of Adani Group’s listed company, the group is looking to recoup its current position by opting for slow and steady growth over rapid growth, fuelled mainly by debt. In other words, the expansion frenzy in recent years.

It has cancelled a 7,000 crore coal purchase plan, decided not to bid for a stake in state-owned energy trading company PTC, reined in spending, paid down some debt and promised to pay more.

The report triggered a sell-off of Rs 12.06 lakh crore in 10 listed companies in the Adani group. That’s almost as much as the market capitalisation of Tata Consultancy Services (TCS), India’s second most valuable company.

The group’s founder chairman Gautam Adani, 60, a first-generation entrepreneur, lost $80.6 billion in his fortune, primarily based on the valuation of his holdings in group companies. Before Hindenburg, he was worth $120 billion, the third richest man in the world and the wealthiest businessman in Asia. But after the Hindenburg report, he slipped to No. 34.

However, gains in all group stocks over the past three sessions have brought him back to No. 24 with a net worth of nearly $50 billion. However, he continues to lag behind his rival Mukesh Ambani, whom he overtook last year to become Asia’s richest businessman and the world’s third-richest businessman. Ambani ranks 11th with a fortune of $82.6 billion.

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