International banks may be looking to lend $600-750 million to Adani Group

28 Jul 2023 , 01:38 AM

According to news reports, Barclays Plc, Deutsche Bank AG, and Standard Chartered Plc are in talks to lend Adani Group a total of $600 million to $750 million as part of efforts to restructure the debt used to finance the company’s acquisition of Ambuja Cements Ltd.

The reports stated that the loan would be syndicated. The conglomerate owned by Gautam Adani is also in talks with additional lenders as it looks to refinance up to $3.8 billion of a borrowing facility obtained for the purchase of Ambuja.

The loan of up to $750 million would be a component of that larger refinancing if it were to be finalized. The figures may fluctuate since the negotiations are still ongoing.

The conversations take place six months after US short-seller Hindenburg charged the Adani Group in January with extensive corporate fraud, which caused a spike in dollar borrowing costs. Adani has refuted the accusations, and the cost of finance for the business has decreased once more.

The company is back to raising money now that its debt indicators are getting better.

In June, AdaniConneX sold senior debt for $213 million to fund the development of a data centre, while the main Adani Enterprises Ltd. company raised 12.5 billion rupees earlier this month through the selling of local currency bonds.

After acquiring the Indian cement business of Holcim Ltd. last year, the company became the nation’s second-largest cement manufacturer.

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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