First Dollar Loan Since Hindenburg Is In The Works For Adani Joint Venture

There are talks between a joint venture of Adani Group and EdgeConneX in the process of trying to secure a loan of about $220 million from a handful of banks, which would be the conglomerate's first offshore borrowing since it became the target of a short-seller called Hindenburg Research back in August. 

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People familiar with the matter, who asked not to be identified because the matter is private, said the money would be used for capital expenditures by the data center provider AdaniConneX Private Ltd. During the next few weeks, they said that the loan would be signed, and that the tenor of the loan might be five years. 

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Despite having been contacted by Adani Group, a representative would not comment on the matter. 

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After Hindenburg, a US-based financial advisory firm, accused Adani's conglomerate of stock manipulation and accounting fraud, the Indian billionaire was forced to reevaluate his ambitions. Although he denied the accusations, the stock price and bond price of his company plunged. 

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A day after its flagship company Adani Enterprises Ltd. shelved plans for an upcoming public bond issue, aimed at raising as much as 10 billion rupees ($121 million), the firm, in what was believed to be its first public offering. 

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Trade Algo data shows that Adani Green Energy Ltd., Adani Ports and Special Economic Zone Ltd., and Adani Enterprises Ltd. have not taken on any US dollar bonds or loans since the Trade Algo report was released which is in line with the details in the report. 

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Trade Algo reported that Adani Group executives met with US investors regarding the company's plans to market private bonds this year totaling up to $1 billion in two tranches.