Bloomberg, a media company has posted in its official Twitter handle that Adani is using stock from its Green companies as collateral to help raise finance for the Carmichael coal mine in Australia
It is to be mentioned that the financing arrangements across the Adani Group agglomerate have sent a fresh chill through ESG markets.
Recently, Norway’s largest pension fund, KLP dumped its entire holding of shares in Adani Green Energy Ltd. However, the renewable part of the empire amid concerns that it might inadvertently have helped finance some of the world’s most polluting activities through the stake. A 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 Enterprises Ltd.
Kiran Aziz, KLP’s head of responsible investing, said in an interview said, “KLP has blacklisted coal from its portfolio, so any indirect financing of the Carmichael project would represent a “breach of our commitments.”
Since, Hindenburg Research published its critical report on January 24, investors have responded to its allegations of fraud and market manipulation by selling Adani shares. However, for investors with environmental, social and governance mandates, there’s an added layer of pain as they realize their green dollars were indirectly supporting the dirtiest of fossil fuels.
According to data combined by Bloomberg, more than 500 funds registered in the European Union as “promoting” ESG goals hold Adani stocks, either directly or indirectly
Adani Green’s stock price has fallen almost 70 percent during fiscal year 2022-2023. Moreover, its debt has slumped. The company said on February 7, that it had won the backing of investors after reporting third-quarter net income that more than doubled from a year earlier. Adani Green CEO Vneet S. Jaain said the results proved the company has a “robust capital management program with leverage well aligned with the business model.”
The Hindenburg report found that “Adani Group companies are intricately and distinctly linked and dependent upon one another. Not one of the listed entities are isolated from the performance, or failure, of the other group companies.”
