American Fincorp Giant Citigroup’s Wealth Arm Pulls Plug On Securities Of Adani Group Companies
It seems Adani Group has suffered yet another setback. Amid the fall in share prices of Adani Group stocks, American multinational investment bank Citigroup’s wealth unit has put a stop on accepting securities of the ports-to-power conglomerate’s companies as collateral for margin loans offered to its clients, as per a report on Investing.com.
The report has cited a source privy to the matter who said Citigroup’s wealth unit cut the loan-to-value (LTV) ratio for credit against Adani securities to zero on Thursday.
The investment banking and fincorp major noted the exponential price drop on Adani-issued securities in recent days and that the plummeting stock and bond prices are a result of negative news around the group’s financial health, as per an internal memo accessed by Bloomberg.
On Wednesday, Investing.com reported that the Switzerland-based global investment bank Credit Suisse Group AG stopped accepting the bonds of Adani Group companies as collateral for margin loans to its private banking clients, assigning a zero lending value for the notes sold by Adani Ports and Special Economic Zone (NS:APSE), Adani Green Energy (NS:ADNA) and Adani Electricity.
