Adani Properties raised credit of ₹800 crore from Credit Suisse in August
Summary
According to media reports, the real estate private company, Adani Properties Private Limited, owned by the richest man in India, Gautam Adani, took a loan of nearly 800 crore Indian rupees from the Switzerland-based investment bank and financing company, Credit Suisse.Incorporated in 1995, Adani Properties Private Limited based in Ahmedabad, Gujarat is in the business of construction and real estate.The Economic Times report stated that the credit raised from Credit Suisse is planned to be used for the expansion of the company financially and also to make certain acquisitions in the real estate sector.In the last few months, Adani Properties Private Limited had also raised money in form of credit from financial institutions such as Barclays Merchant Bank and JP Morgan Chase.Since the beginning of the current financial year in April 2022, the property company has raised nearly 2525 crore rupees at an annual interest rate of 15% on average. All the credits raised were for short tenures of one to three years.A fund of 800 crores from Credit Suisse was disbursed by the global investment bank in three tranches. Another 550 crore rupees from Credit Suisse were received by the company in April 2022 in two tranches.Barclays Merchant Bank invested a sum of 425 crore Indian rupees in bonds, which would mature on April 30th, 2025.Copthall Mauritius Investment, which is an affiliate business entity of world-renowned corporate banker, JP Morgan Chase, gave a credit of nearly 750 crore Indian rupees, in the form of four tranches in April.The news report stated that the entire amount of money was raised by Adani Properties through zero coupon bonds. Huge security cover for the credit, which is near twice the borrowed amount also increased the credit rating of the bonds.In the previous financial year, Adani Properties had reported a profit of 4793 crores. In FY 2020, the company suffered a loss of 124 crores.