Standard Chartered Joins List Of Banks That Stopped Lending Against Adani Dollar Bonds: Report

It is said that some Standard Chartered relationship managers have informed their private wealth clients in regions large markets like Singapore that the bank would not accept Adani Group companies’ bonds as collateral for margin loans.

New Delhi: British bank Standard Chartered plc has stopped providing loans on the back of dollar bonds floated by Adani Group companies, reported the Economic Times. Earlier, Swiss investment banking company Credit Suisse and American CitiGroup adopted the same measure.

It is said that some Standard Chartered relationship managers have informed their private wealth clients in regions large markets like Singapore that the bank would not accept Adani Group companies’ bonds as collateral for margin loans. ET quoted a senior banker familiar with the development who said that “The decision is a function of the price movements of the underlying pledged stock and is often triggered by an algorithmic system. StanChart has a comparatively tiny exposure to these securities.” “So, it’s not a material event for the bank… But such safeguards exist to protect the bank and the clients.”