Adani Group dollar bonds rallied on Friday as embattled billionaire Gautam Adani was said to be in talks with creditors to prepay some loans in a bid to restore confidence in his business empire.
The notes also pared losses from earlier in the week as Goldman Sachs Group and JP Morgan Chase told some clients that Adani bonds can offer value due to the strength of certain assets.
Adani debt has hit a floor in the short term, Goldman Sachs trading executives said in a call Thursday, according to sources.
All 15 dollar debt securities of the group advanced on Friday, partly helped by news that Adani Ports & Special Economic Zone had made coupon payments on schedule.
The 2031 notes sold by Adani Ports, one of those which had a payment date on February 2, climbed 3.7 cents on the dollar to 67.7 cents as of 10.50am in Hong Kong.
Adani Green Energy’s dollar bond maturing in September 2024 rose 6.8 cents on the dollar to 70.4 cents, on course for its biggest daily increase on record, according to Bloomberg-compiled data.
Even so, some on the conglomerate’s dollar debt is trading at below 70 cents, a level which is typically considered distressed.
Financial institutions from New York to London and Tokyo are dissecting their exposure to the empire of Mr Adani, who was Asia’s richest man only a few days ago.
The billionaire’s interests, which include ports, power plants and coal mines, have fallen in value by more than $100 billion since Hindenburg Research’s fraud allegations last week.
Mr Adani vehemently denied the claims but was forced to abruptly scrap a $2.4 billion stock offering for his flagship Adani Enterprises.
His backers include Citigroup, Credit Suisse and Barclays. They are among banks pursuing a range of options to curb the risk of losses, including asking for more collateral and halting the use of Adani company securities to cover margin loans to wealth clients.
Lending to India’s tycoons and their companies was until recently a money-spinner for global banks seeking to cash in on one of the world’s fastest-growing economies.
The country has also been viewed as a buffer to growth in China, whose economy was pummelled by the now-abandoned zero-Covid policy and clampdowns on private enterprise.
“India is clearly a difficult place to lend money,” said Tom Kirchmaier, professor at the Centre for Economic Performance at the London School of Economics.
“Banks are still desperate for business, and this is just a reminder that India may not be able to compensate a decline of Chinese business.”
Many global lenders are also still smarting from the implosion of another billionaire’s company, Archegos Capital Management, which failed in 2021.
Multibillion-dollar losses, regulatory fines and sweeping management changes followed that collapse — a debacle the banks are keen to avoid repeating.
“Banks would not want to be the last ones left holding the bag — just look at Archegos and Greensill Capital and what happened to the banks that reacted slowly,” said Mak Yuen Teen, a professor at the National University of Singapore, who carries out research on corporate governance.
To be sure, there is no indication that Adani Group companies are facing a liquidity crunch.
The tycoon’s port business made payments on dollar bonds as scheduled on Thursday. He is also in talks with creditors to prepay some loans backed by pledged shares as he seeks to restore market confidence, a source said.
Goldman Sachs and JP Morgan Chase have told some clients that bonds related his business empire can offer value.
The group showcased its extensive local and international bank relationships in a 413-page rebuttal to the short-seller’s allegations, which it called “a calculated attack on India”.
Some of the most prominent names in banking are listed among 29 supporters, although the exact nature of their ties was not disclosed.
The Adani Group, which comprises half a dozen major companies, put up about $300 million worth of shares to maintain its collateral cover on a $1 billion loan, Bloomberg News reported on January 31. The loan was made by a group of banks, including Barclays.
Meanwhile, Citigroup’s wealth unit stopped accepting securities issued by Adani Group companies as collateral for margin loans after “negative news around the group’s financial health” led to dramatic price drops, Bloomberg News reported, citing an internal memo.
Credit Suisse’s private banking unit had also made a similar change for the bonds.
Mizuho Financial Group’s securities division had past dealings with Adani and is examining the allegations being levelled against the conglomerate, the unit’s chief executive Yoshiro Hamamoto told reporters in Tokyo on Thursday.
Mizuho Securities has managed debt issuance by Adani companies, public documents show.
Meanwhile, UBS chief executive Ralph Hamers said the bank’s exposure to the meltdown was not a matter of concern for the Swiss bank.
“I wouldn’t worry about it,” Mr Hamers said in Bloomberg interview this week.
Central bank Questions
India’s central bank has asked lenders for details of their exposure to Adani Group companies, sources said. Domestic banks are standing by Mr Adani, who has close ties to the Narendra Modi government.
Dinesh Khara, chairman of State Bank of India, the country’s biggest lender, told Bloomberg that its loans to the Adani Group are backed by cash-generating assets and overseas exposure was “nominal”.
The lender has given loans of as much as $2.6 billion to companies in the Adani conglomerate, or about half of what is allowed under the rules, according to a source.
Earlier, on Thursday, Indian lender IDFC First Bank said it was “comfortable” with its ties to Mr Adani.
Its outstanding funded exposure represents only 0.06 per cent of the bank’s funded assets while the non-funded outstanding amount is 0.51 per cent. The lender said it was receiving payments on schedule.
Mr Adani has repeatedly denied the allegations, called the short-seller’s report “bogus” and threatened legal action.
His decision to withdraw Adani Enterprises’ follow-on share sale — the largest cancellation in Asia since 2015 according to Bloomberg-compiled data — will not have any impact on existing operations and future plans, he said in a video speech on Thursday.
Marathon results
Men:
1. Titus Ekiru(KEN) 2:06:13
2. Alphonce Simbu(TAN) 2:07:50
3. Reuben Kipyego(KEN) 2:08:25
4. Abel Kirui(KEN) 2:08:46
5. Felix Kemutai(KEN) 2:10:48
Women:
1. Judith Korir(KEN) 2:22:30
2. Eunice Chumba(BHR) 2:26:01
3. Immaculate Chemutai(UGA) 2:28:30
4. Abebech Bekele(ETH) 2:29:43
5. Aleksandra Morozova(RUS) 2:33:01
Killing of Qassem Suleimani
Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
Torque: 390Nm
Price: From Dh126,000
Available: Now
Electric scooters: some rules to remember
- Riders must be 14-years-old or over
- Wear a protective helmet
- Park the electric scooter in designated parking lots (if any)
- Do not leave electric scooter in locations that obstruct traffic or pedestrians
- Solo riders only, no passengers allowed
- Do not drive outside designated lanes
Conflict, drought, famine
Estimates of the number of deaths caused by the famine range from 400,000 to 1 million, according to a document prepared for the UK House of Lords in 2024.
It has been claimed that the policies of the Ethiopian government, which took control after deposing Emperor Haile Selassie in a military-led revolution in 1974, contributed to the scale of the famine.
Dr Miriam Bradley, senior lecturer in humanitarian studies at the University of Manchester, has argued that, by the early 1980s, “several government policies combined to cause, rather than prevent, a famine which lasted from 1983 to 1985. Mengistu’s government imposed Stalinist-model agricultural policies involving forced collectivisation and villagisation [relocation of communities into planned villages].
The West became aware of the catastrophe through a series of BBC News reports by journalist Michael Buerk in October 1984 describing a “biblical famine” and containing graphic images of thousands of people, including children, facing starvation.
Band Aid
Bob Geldof, singer with the Irish rock group The Boomtown Rats, formed Band Aid in response to the horrific images shown in the news broadcasts.
With Midge Ure of the band Ultravox, he wrote the hit charity single Do They Know it’s Christmas in December 1984, featuring a string of high-profile musicians.
Following the single’s success, the idea to stage a rock concert evolved.
Live Aid was a series of simultaneous concerts that took place at Wembley Stadium in London, John F Kennedy Stadium in Philadelphia, the US, and at various other venues across the world.
The combined event was broadcast to an estimated worldwide audience of 1.5 billion.
The specs: 2019 Haval H6
Price, base: Dh69,900
Engine: 2.0-litre turbocharged four-cylinder
Transmission: Seven-speed automatic
Power: 197hp @ 5,500rpm
Torque: 315Nm @ 2,000rpm
Fuel economy, combined: 7.0L / 100km
Volvo ES90 Specs
Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)
Power: 333hp, 449hp, 680hp
Torque: 480Nm, 670Nm, 870Nm
On sale: Later in 2025 or early 2026, depending on region
Price: Exact regional pricing TBA
Director: Laxman Utekar
Cast: Vicky Kaushal, Akshaye Khanna, Diana Penty, Vineet Kumar Singh, Rashmika Mandanna
Rating: 1/5
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
What you as a drone operator need to know
A permit and licence is required to fly a drone legally in Dubai.
Sanad Academy is the United Arab Emirate’s first RPA (Remotely Piloted Aircraft) training and certification specialists endorsed by the Dubai Civil Aviation authority.
It is responsible to train, test and certify drone operators and drones in UAE with DCAA Endorsement.
“We are teaching people how to fly in accordance with the laws of the UAE,” said Ahmad Al Hamadi, a trainer at Sanad.
“We can show how the aircraft work and how they are operated. They are relatively easy to use, but they need responsible pilots.
“Pilots have to be mature. They are given a map of where they can and can’t fly in the UAE and we make these points clear in the lectures we give.
“You cannot fly a drone without registration under any circumstances.”
Larger drones are harder to fly, and have a different response to location control. There are no brakes in the air, so the larger drones have more power.
The Sanad Academy has a designated area to fly off the Al Ain Road near Skydive Dubai to show pilots how to fly responsibly.
“As UAS technology becomes mainstream, it is important to build wider awareness on how to integrate it into commerce and our personal lives,” said Major General Abdulla Khalifa Al Marri, Commander-in-Chief, Dubai Police.
“Operators must undergo proper training and certification to ensure safety and compliance.
“Dubai’s airspace will undoubtedly experience increased traffic as UAS innovations become commonplace, the Forum allows commercial users to learn of best practice applications to implement UAS safely and legally, while benefitting a whole range of industries.”
Batti Gul Meter Chalu
Producers: KRTI Productions, T-Series
Director: Sree Narayan Singh
Cast: Shahid Kapoor, Shraddha Kapoor, Divyenndu Sharma, Yami Gautam
Rating: 2/5
Company%20Profile
%3Cp%3E%3Cstrong%3ECompany%20name%3A%3C%2Fstrong%3E%20Cargoz%3Cbr%3E%3Cstrong%3EDate%20started%3A%3C%2Fstrong%3E%20January%202022%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Premlal%20Pullisserry%20and%20Lijo%20Antony%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%3Cbr%3E%3Cstrong%3ENumber%20of%20staff%3A%3C%2Fstrong%3E%2030%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%3C%2Fstrong%3E%20Seed%3C%2Fp%3E%0A
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
Dhadak 2
Director: Shazia Iqbal
Starring: Siddhant Chaturvedi, Triptii Dimri
Rating: 1/5
The biog
Profession: Senior sports presenter and producer
Marital status: Single
Favourite book: Al Nabi by Jibran Khalil Jibran
Favourite food: Italian and Lebanese food
Favourite football player: Cristiano Ronaldo
Languages: Arabic, French, English, Portuguese and some Spanish
Website: www.liliane-tannoury.com
Wenger's Arsenal reign in numbers
1,228 - games at the helm, ahead of Sunday's Premier League fixture against West Ham United.
704 - wins to date as Arsenal manager.
3 - Premier League title wins, the last during an unbeaten Invincibles campaign of 2003/04.
1,549 - goals scored in Premier League matches by Wenger's teams.
10 - major trophies won.
473 - Premier League victories.
7 - FA Cup triumphs, with three of those having come the last four seasons.
151 - Premier League losses.
21 - full seasons in charge.
49 - games unbeaten in the Premier League from May 2003 to October 2004.
Teaching your child to save
Pre-school (three - five years)
You can’t yet talk about investing or borrowing, but introduce a “classic” money bank and start putting gifts and allowances away. When the child wants a specific toy, have them save for it and help them track their progress.
Early childhood (six - eight years)
Replace the money bank with three jars labelled ‘saving’, ‘spending’ and ‘sharing’. Have the child divide their allowance into the three jars each week and explain their choices in splitting their pocket money. A guide could be 25 per cent saving, 50 per cent spending, 25 per cent for charity and gift-giving.
Middle childhood (nine - 11 years)
Open a bank savings account and help your child establish a budget and set a savings goal. Introduce the notion of ‘paying yourself first’ by putting away savings as soon as your allowance is paid.
Young teens (12 - 14 years)
Change your child’s allowance from weekly to monthly and help them pinpoint long-range goals such as a trip, so they can start longer-term saving and find new ways to increase their saving.
Teenage (15 - 18 years)
Discuss mutual expectations about university costs and identify what they can help fund and set goals. Don’t pay for everything, so they can experience the pride of contributing.
Young adulthood (19 - 22 years)
Discuss post-graduation plans and future life goals, quantify expenses such as first apartment, work wardrobe, holidays and help them continue to save towards these goals.
* JP Morgan Private Bank
LA LIGA FIXTURES
Saturday (UAE kick-off times)
Leganes v Getafe (12am)
Levante v Alaves (4pm)
Real Madrid v Sevilla (7pm)
Osasuna v Valladolid (9.30pm)
Sunday
Eibar v Atletico Madrid (12am)
Mallorca v Valencia (3pm)
Real Betis v Real Sociedad (5pm)
Villarreal v Espanyol (7pm)
Athletic Bilbao v Celta Vigo (9.30pm)
Monday
Barcelona v Granada (12am)
