Adani Group is now in talks with a number of foreign lenders in an effort to repay the debt incurred after the purchase of Ambuja Cements Ltd. Barclays Plc, Deutsche Bank AG, and Standard Chartered Plc are among the institutions reportedly considering offering a combined loan of between $600 million and $750 million, according to reputable sources.
The proposed loan, which would be syndicated, is a component of Adani Group’s larger proposal to refinance the lending facility utilised for the purchase of Ambuja up to $3.8 billion. The loan amount is still a matter of debate and might vary.
It’s important to note that Adani Group is looking into discussions with additional lenders in order to get the money required for the refinancing process. The parties concerned, however, have chosen to maintain their anonymity for the time being because the subject is private. The aforementioned banks, which also include Barclays, Deutsche Bank, and Standard Chartered, as well as Adani Group, have declined to comment on the current discussions.
Following claims made against Adani Group by US shortseller Hindenburg early this year, the company has decided to seek funding. The charges, which claimed extensive corporate wrongdoing, caused a brief rise in the cost of borrowing dollars for the company owned by Indian billionaire Gautam Adani. Adani Group, however, has categorically refuted the allegations, and its cost of capital has now stabilised, enabling the company’s debt metrics to advance.
With its financial situation having improved, Adani Group has started a fundraising drive. AdaniConneX was able to generate $213 million in June by selling senior notes in order to fund the development of data centres. Additionally, the company’s flagship, Adani Enterprises Ltd., raised 12.5 billion rupees earlier this month through the issuance of local currency bonds.
Adani Group rose to become the nation’s second-largest cement maker after purchasing the Indian cement operations of Holcim Ltd. last year. The Adani Group company in charge of purchasing Holcim’s cement division, Endeavour Trade & Investment, with headquarters in Mauritius, borrowed money to pay for this large transaction. The maturity dates for these bridging loans are 2023 and 2024.
About Adani Group:
The Adani Group is a global company with headquarters in Ahmedabad, India. Gautam Adani founded it in 1988, primarily concentrating on trading in commodities. The Group has broadened its business activities throughout the years to include a number of industries, including port administration, electric power production and transmission, renewable energy, mining, airport operations, natural gas, food processing, and infrastructure. Notably, approximately 60% of the revenue for the Adani Group comes from companies involved in the coal industry.
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