Adani Group’s joint venture with data centre provider EdgeConneX is reportedly in talks with about half a dozen banks for a loan of $220 million. This would be the conglomerate’s first offshore borrowing since Hindenburg Research released its damning report on the group.
According to a report in Bloomberg that cited people in the know but requested anonymity, the JV, AdaniConneX Private Ltd, would use the money for capital expenditure with a five-year tenor. The loan is likely to be signed in the next few weeks.
Hindenburg’s report, which was released on January 24, eroded more than $100 billion of the group’s value of shares. The group was also forced to scale back some of its aggressive expansion plans.
Meanwhile, Securities and Exchange Board of India (SEBI) is reportedly investigating possible ‘related party’ transaction violations in Adani Group’s dealings with three offshore entities that have links with Gautam Adani’s brother, Vinod Adani. The entities entered into several investment transactions with unlisted units of the conglomerate.
Vinod Adani is either a beneficial owner, director or has links with those three offshore entities. SEBI is probing if lack of that disclosure violated ‘related party transaction’ rules. An Adani Group spokesperson said Vinod Adani is a member of the Adani family and part of the promoter group, but does not hold any managerial position in any of the listed Adani entities or their subsidiaries.