Adani Bonds assigned zero lending value

Adani Group, the Indian conglomerate facing accusations of corporate fraud and stock manipulation from activist investor Hindenburg Research, has been dealt a further blow.

Credit Suisse, the Swiss investment bank, has decided to assign zero lending value to bonds issued by three of Adani Group’s listed subsidiaries, Adani Ports, Adani Green Energy, and Adani Electricity Mumbai Ltd.

This means that the bank will no longer accept these bonds as collateral for margin loans to its private banking clients. The move comes amid a difficult day for the company’s listed entities, with shares in Adani Enterprises dropping 28.2%. Other firms within the group also saw significant drops, with Adani Ports declining 19.18% and Adani Power losing 4.98%.

The market rout has resulted in a significant decrease in founder Gautam Adani’s net worth, which now stands at $75.1 billion, down from $88.2 billion last week.

According to reports, other lenders, including two European banks and one from Singapore, continue to offer margin loans of 70-80% of the value of dollar-denominated bonds.

Pan Finance is a print journal and news website providing worldwide intelligence on finance, economics and global commerce. Known for our in-depth analysis and opinion pieces from esteemed academics and celebrated professionals; our readership consists of senior decision makers from across the globe.

Contact us