Adani Transmission To Announce Debt Refinancing Plans Soon, No Plans To Raise Additional Debt For CapEx

Adani Group had already hired banks to arrange calls with bond investors to reassure them about the payment capacity of its operating companies after it was caught up in a short-selling storm in recent weeks.

New Delhi: Adani Transmission on Tuesday said in an investor call that it will announce debt refinancing plans in a few weeks, Reuters reported quoting a source with direct knowledge of the matter. The Adani Group company’s stock price has been down by over 69 per cent since the publication of the Hindenburg Research report on 24 January 2023.

Adani Transmission has no plans to raise additional debt for capital expenditure, which it plans to cover with operating cash inflows, the executives said during the investor call, the report added.

Adani Group had already hired banks to arrange calls with bond investors to reassure them about the payment capacity of its operating companies after it was caught up in a short-selling storm in recent weeks.

Seven of the major listed companies of the Adani Group have lost a combined $125 billion in market value after the publication of the Hindenburg Research report accusing the conglomerate of improper use of offshore tax havens and stock manipulation. The report also flagged concerns over its high debt levels.

Adani Group has repeatedly rejected the concerns of debt levels and denied any wrongdoings. However, the group has severely been hit at a global level. Over the past few weeks, the dollar bonds that Adani firms issued have dropped sharply in value, although they have pared back some losses in recent days.

The dollar bonds of Adani Transmission due in 2026 hit a record low of about 75 cents on the dollar earlier this month. They were seen at around 84 cents on Tuesday, according to Tradeweb data.