In further trouble for Adani Group, a report on Wednesday said Credit Suisse Group AG has stopped accepting bonds of Gautam Adani’s group of companies as collateral for margin loans to its private banking clients.
The move comes amid heightened scrutiny of the conglomerate’s finances after allegations of fraud by US short seller Hindenburg Research. Adani Group stocks crashed after this news emerged.
The Swiss lender’s private banking arm has assigned a zero lending value for notes sold by Adani Ports and Special Economic Zone, Adani Green Energy and Adani Electricity Mumbai Ltd, reported Bloomberg.
It had previously offered a lending value of about 75% for the Adani Ports notes, said Bloomberg citing sources.
However, as of now other banks continue to lend against Adani debt. At least two European private banks kept the level unchanged as of now, with one of those offering lending of between 75% to 80% for Adani Ports dollar bonds, which could trigger a rating downgrade, said the report.
A representative at Adani Group said it has no relationship with Credit Suisse’s private bank.
Also Read: Adani Enterprises shares crash 35%; group’s other stocks feel the pain too
