Guwahati: Bloomberg, a media company has posted in its official Twitter handle that Adani is using stock from its Green companies as collateral to help obtain money for the Carmichael coal mine in Australia.
It should be noted that new uncertainty has been introduced to the ESG markets by the financing methods used by the Adani Group as a whole.
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.
More than 500 funds registered in the European Union as “supporting” ESG goals reportedly hold Adani stocks, either directly or indirectly, according to data compiled by Bloomberg.
The price of Adani Green’s stock dropped by over 70% for the fiscal year 2022-2023. Moreover, its debt has fallen. The company announced on February 7 that it had gained the support of investors following the release of 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.”