Adani group to repay some commercial papers before maturity
Aditya Birla Sun Life AMC, SBI Mutual Fund and HDFC AMC are directly exposed to the group’s commercial paper borrowings.
20 February, 2023•3 min
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20 February, 2023•3 min
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Editor's note: The Adani group is likely to buy back part of its commercial paper borrowings from some domestic mutual funds ahead of their maturity, according to two people with direct knowledge of the matter. “Adani is buying back our outstanding debt starting from this week, as they have liquidity,” says the CEO of a fund house that has exposure to Adani stocks, asking not to be named. He adds that the buyback would be of commercial papers and is going to happen in the next couple of days. Commercial papers are a short-term debt instrument issued by companies to raise funds in order to meet their working capital needs. Mutual funds are a key investor in these instruments. “The Adani group would be buying back 25% of the commercial papers from domestic fund houses in the next couple of days,” says a senior executive at another fund house with exposure to the group’s debt, also requesting anonymity. This is over and above the scheduled repayment of Rs 993.53 crore due to SBI Mutual Fund and Rs 496.77 crore due to Aditya …
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