Adani Properties raises Rs 800 crore from Credit Suisse.
What is Credit Suisse?
A leading international investment bank and provider of financial services, Credit Suisse Group AG was founded and is headquartered in Switzerland. One of the 9 international “Bulge Bracket” banks, with its headquarters in Zurich, it has offices in all of the essential financial centers around the world and offers services in investment banking, private banking, asset management, and shared services. It is renowned for its strict banking secrecy and client confidentiality. The Financial Stability Board regards it as a systemically important bank. The FED’s primary dealer and Forex counterparty are Credit Suisse.
To help pay for the expansion of Switzerland’s rail system, Credit Suisse was established in 1856. It made loans that were used to build the European rail network and the electrical grid in Switzerland. In response to the rise of the middle class and competition from fellow Swiss banks UBS and Julius Bär, it started to transition to retail banking in the 1900s. Before acquiring a controlling interest in the bank in 1988, Credit Suisse formed a partnership with First Boston in 1978.
The business received organizations like the Winterthur Group, Swiss Volksbank, Swiss American Securities Inc. (SASI), and Bank Leu between 1990 and 2000. The Qatar Investment Authority and BlackRock are Credit Suisse’s two largest institutional shareholders, with about 5% each, followed by the US mutual fund companies Harris Associates (the largest shareholder as of August 2022 with 10.1%) and Dodge & Cox, the Norwegian central bank, and the Saudi Arabian Olayan Group.
During the global financial crisis, the company, one of the least affected banks, started cutting costs, executing layoffs, and shrinking its investment business afterward. Multiple international investigations into the bank’s tax evasion led to a guilty plea and the forfeiture of US $2.6 billion in fines between 2008 and 2012. Credit Suisse had assets worth CHF 1.6 trillion in 2021.
Adani Properties raises Rs 800 crore from Credit Suisse- know everything.
Beginning of April of this fiscal year, APPL, which raises money for the Adani group companies, borrowed Rs 2,525 crore for terms ranging from one to three years at an average annual rate of 15%. According to the sources, the SB Adani Family Trust, which owns the promoter shares of the publicly traded Adani Group companies, was used to raise all of the funds through the sale of zero-coupon bonds.
According to those familiar with the situation, industrialist Gautam Adani’s privately held Adani Properties (APPL) last week raised Rs 800 crore in debt from Credit Suisse to finance growth and acquisition in the real estate sector.
In recent months, the business has also received funding from a JPMorgan Chase affiliate and a Barclays Merchant Bank affiliate. JPMorgan, Credit Suisse, and The Adani Group did not respond to ET’s inquiries. Barclays opted not to respond.
The sources claim that the SB Adani Family Trust, which owns the promoter shares of the publicly traded Adani Group companies, was used to raise all the funds through the sale of zero-coupon bonds. In three installments in August, Credit Suisse contributed Rs 800 crore; in two installments in April, it contributed Rs 550 crore. Barclays paid Rs 425 crore for bonds with a maturity date of April 30, 2025, and Copthall Mauritius Investment, a JPMorgan affiliate, paid Rs 750 crore over the course of 4 payments in the month of April.
According to the rating agency, Adani Transmission, Adani Green, and Adani Ports & Special Economic Zone (APSEZ) have pledged their shares, providing credit enhancement (CE) and a security cover equal to twice the amount borrowed. Credit rating without credit enhancement would be IVR A+/stable.
A leading international investment bank and service provider, Credit Suisse Group AG was founded and is headquartered in Switzerland. One of the 9 international “Bulge Bracket” banks, with its headquarters in Zurich, it has offices in all of the essential financial centers around the world and offers services in investment banking, private banking, asset management, and shared services. It is renowned for its strict banking secrecy and client confidentiality. The Financial Stability Board regards it as a systemically important bank. The FED’s primary dealer and Forex counterparty are Credit Suisse.
edited and proofread by nikita sharma
