Adani Seeking $3.5 Billion Loan From Banks To Refinance Debt

The Adani Group is seeking to refinance a debt and is in talks with global banks for the same. The debt in question was taken by Adani to fund its purchase of Ambuja Cements Ltd during September 2022. The global banks are likely to provide a loan amount of $3.5 billion to the group.

The Adani Group would repay at least $300 million on the original Ambuja facility. The group was seeking to refinance a total of $3.8 billion worth of debt taken for the Ambuja acquisition, according to a report by Bloomberg.

First Abu Dhabi Bank PJSC, Mizuho Financial Group Inc, DBS Group Holdings Ltd., Sumitomo Mitsui Banking Corp, and Mitsubishi UFJ Financial Group, Inc. would each lend about $400 million, while other banks would lend smaller amounts.

The fact that the conglomerate is negotiating loan deals is a sign that it is returning to normal business operations after being accused of stock price manipulation by US shortseller Hindenburg Research earlier this year.

The report published by Hindenburg caused the value of the company's stocks to drop by more than $150 billion at one point. However, the Adani Group has repeatedly denied the allegations.

The loan transaction is not yet finalized and the terms could still change. If the deal closes, it would be the fourth-biggest loan in Asia outside of Japan in 2023.

As part of its return to capital markets after the Hindenburg episode, the group’s flagship firm Adani Enterprises already raised Rs 12.5 billion by issuing local-currency bonds in July. Veteran investor Rajiv Jain’s GQG Partners LLC has also purchased a stake in group firms, through various bulk deals. On Wednesday, shares of Adani Enterprises settled 0.42 per cent lower at 2,525 rupees apiece on the NSE.