Adani is negotiating the largest debt refinancing since the Hindenburg

14 Jun 2023 , 01:04 AM

The Indian ports-to-power business is considering whether to refinance the initial loan into debt with a longer maturity period and has begun speaking with individual banks about that idea.

According to news reports, Adani Group is in discussions with lenders, including international banks, about refinancing up to $3.8 billion of a loan facility it took to buy Ambuja Cements Ltd. last year.

According to news reports the ports-to-power company founded by Gautam Adani is considering whether to convert the initial loan into debt with a longer maturity period and has begun speaking with banks individually about that proposal.

The project is a crucial test of whether the company’s access to international credit lines will be restored after US short-seller Hindenburg accused the Adani Group of widespread corporate misconduct in January. Adani has refuted the charges.

The majority of the current lenders are anticipated to participate, and Adani anticipates finishing the process in three to four months, according to the reports. An inquiry for comment was not immediately answered by an Adani official.

Banks like Barclays Plc, Deutsche Bank AG, Standard Chartered Plc, and Mitsubishi UFJ Financial Group Inc. are reportedly in talks to take part in the refinancing deal, and several institutions have already sought permission from their respective international credit teams. Standard Chartered, MUFG, Barclays, and Deutsche all declined to comment. The agreement is not yet complete and might not go through.

If the proposal proceeds, it would be the latest indication that the conglomerate is getting back to business as usual after months of damage control following Hindenburg’s scathing attack that at one point cost the company’s stocks more than $150 billion.

The dramatic fluctuations of the Adani stock were not the result of any regulatory failures or wrongdoing, according to a group of specialists the Indian Supreme Court convened. After completing its investigation into the shortseller’s claims against Adani Group, the Indian securities watchdog is still anticipated to issue a second ruling in August.

The conglomerate Adani is now the nation’s second-largest cement maker after acquiring the Indian assets of Holcim AG. Endeavour Trade & Investment, a Mauritius-based Adani Group subsidiary that purchased Holcim’s cement division, obtained bridge loans with 2023 and 2024 maturity dates to fund the transaction.

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