Thomas BabychanAccording to media reports, the real estate private company, Adani Properties Private Limited, owned by the richest man in India, Gautam Adani, took a loan of nearly 800 crore Indian rupees from the Switzerland-based investment bank and financing company, Credit Suisse.
Incorporated in 1995, Adani Properties Private Limited based in Ahmedabad, Gujarat is in the business of construction and real estate.
The Economic Times report stated that the credit raised from Credit Suisse is planned to be used for the expansion of the company financially and also to make certain acquisitions in the real estate sector.
In the last few months, Adani Properties Private Limited had also raised money in form of credit from financial institutions such as Barclays Merchant Bank and JP Morgan Chase.
Since the beginning of the current financial year in April 2022, the property company has raised nearly 2525 crore rupees at an annual interest rate of 15% on average. All the credits raised were for short tenures of one to three years.
A fund of 800 crores from Credit Suisse was disbursed by the global investment bank in three tranches. All the tranches of funds were transferred in August. Another 550 crore rupees from Credit Suisse were received by the company in April 2022 in two tranches.
Barclays Merchant Bank invested a sum of 425 crore Indian rupees in bonds, which would mature on April 30th, 2025.
Copthall Mauritius Investment, which is an affiliate business entity of world-renowned corporate banker, JP Morgan Chase, gave a credit of nearly 750 crore Indian rupees, in the form of four tranches in April.
The news report stated that the entire amount of money was raised by Adani Properties through zero coupon bonds. These zero coupon bonds were pledged with shares of the family trust of Adani, SB Adani Family Trust.
SB Adani Family Trust currently has shareholdings as promoters, in all listed companies under the Adani Group. Adani Enterprises, Adani Green Energy, Adani Wilmar, Adani Ports & SEZ, Adani Power, Adani Transmissions and Adani Total Gas are the companies which are currently listed on various stock exchanges.
According to Infomerics, a credit rating company accredited by RBi, the bonds issued by Adani Properties Private Limited are currently rated as IVR AA (CE).
A credit enhancement was given to the bonds of the company as pledges of companies such as Adani Ports & Special Economic Zone (APSEZ), Adani Transmission and Adani Green were pledged as securities. Huge security cover for the credit, which is near twice the borrowed amount also increased the credit rating of the bonds.
In the previous financial year, Adani Properties had reported a profit of 4793 crores. In FY 2020, the company suffered a loss of 124 crores.