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Adani credit facilities expose collateral web full of red flags

Since short-seller Hindenburg Research published its critical report on Jan 24, investors have responded to its allegations of fraud and market manipulation by selling Adani shares

Adani, Adani Group
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Photo: Bloomberg

Greg Ritchie | Bloomberg
Financing arrangements across the Adani Group conglomerate have sent a fresh chill through ESG markets as investors wake up to a new risk.

Norway’s largest pension fund, KLP, recently dumped its entire holding of shares in Adani Green Energy Ltd., the renewables part of the empire, amid concerns that it might inadvertently have helped finance some of the world’s most polluting activities via the stake. A Feb. 10 public filing has since made clear that Adani is using stock from its Green companies as collateral in a credit facility that’s helping to finance the Carmichael coal mine in Australia, via Adani

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First Published: Feb 19 2023 | 1:59 PM IST

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