Adani Group plans to refinance $3.5 billion debt taken for ACC-Ambuja buy

20 Oct 2023 , 10:17 AM

According to insiders, the Adani Group is about to execute a definitive agreement to refinance $3.5 billion in loans obtained for last year’s acquisition of ACC Ltd and Ambuja Cement.

At least 18 foreign banks have agreed to join a consortium led by Barclays, Deutsche Bank, and Standard Chartered, among others, to refinance loans used to support India’s largest M&A in the construction materials business.

According to a source familiar with the situation, the financing arrangement was anticipated to be signed late Thursday night. The Adani family and the promoters will prepay around $300 million as part of the revised conditions. This will also be the largest refinancing transaction in the Asia Pacific this fiscal year.

According to individuals familiar with the details of the loan’s price, the process is estimated to save the Adanis roughly a quarter billion dollars over a three-year period.

To be sure, the group has returned about $2 billion in Ambuja and ACC loans, including $1 billion in promoter advances obtained under a loan against shares (LAS) arrangement from three international banks.

 

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