Adani Group completes $2.65 billion deleveraging program; cash balance at over $4.75 bln

The Adani group has reduced the debt on books by $2.65 billion through prepayment of share-backed loans and the loan taken to acquire Ambuja Cements.

The net debt to EBITDA ratio is now at 2.81 times, the group said in a credit update.

“The deleveraging program testifies the strong liquidity management and capital access at sponsor level even in volatile market condition, supplementing the solid capital prudency adopted at all portfolio companies,” the group said.

The group made full prepayment of margin-linked share-backed financing aggregating $2.15 billion before March 12, well in advance of the March 31 deadline.

The promoters also prepaid $700 million debt taken for the acquisition of Ambuja Cement. The prepayment was done along with interest payment of $203 million, the group said.

The Adani group portfolio’s combined net debt to operating improved to 3.27x in FY23 from 3.81x in FY22.

In FY23, promoters completed a secondary sale of shares to GQG Partners, for Rs 15,500 crore in four key listed entities.

The cash balance at the listed portfolio is now over $4.75 billion (Rs 40,351 crore), the group said. Cumulative cash balance and free flow from operations at Rs 77,889 crore, are much higher than debt maturity cover for FY24, FY25 and FY26 of Rs 11,796 crore, Rs 32,373 crore and Rs 16,614 crore, respectively at combined portfolio level, the group said.

Source: https://economictimes.indiatimes.com/markets/stocks/news/adani-group-completes-2-65-billion-deleveraging-program-cash-balance-at-over-4-75-bln/articleshow/100771658.cms?from=mdr

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