Adani says it secures $3b credit from wealth fund

India's Adani Group has told creditors it has secured $3 billion loan from a sovereign wealth fund, two sources with knowledge of the matter said, as the embattled conglomerate seeks to ease concerns about its credit profile after a short-seller attack.

The credit line from the sovereign wealth fund could be upsized to $5 billion, said the two sources, citing a memo that was circulated to participants as highlights of a three-day investor roadshow ending on Wednesday.

The identity of the sovereign wealth fund was not disclosed in the memo.

The sources declined to be identified as they were not authorised to speak with media.

A spokesperson for Adani did not immediately respond to a Reuters request for comment.

The news of a fresh fundraising plan comes a day after Adani management told bondholders that it expected to prepay or repay share-backed loans worth $690 million to $790 million by end-March.

The plans are being unveiled as the group holds a fixed-income roadshow this week in Singapore and Hong Kong to shore up investor confidence amid steep share price falls and a regulatory probe.

Seven listed Adani Group companies have lost more than $140 billion in market value since a Jan. 24 report by Hindenburg Research alleged stock manipulation and improper use of tax havens, and flagged concerns over debt levels.

Adani has rejected the allegations and denied any wrongdoing.