Adani Group is seeking loans to refinance debt taken on to fund its purchase of Ambuja Cements which could be one of Asia’s largest syndicated loan deals of the year.
One of Asia’s biggest deals
Banks are likely to refinance a total of $3.5 billion and Adani would repay at least $300 million on the original Ambuja facility.
It intends to raise this amount by September.
Involved entities
It had been in talks with lenders for several months as it seeks to refinance debt taken for its Ambuja acquisition.
DBS Group Holdings Ltd., First Abu Dhabi Bank PJSC, Mizuho Financial Group Inc, Mitsubishi UFJ Financial Group, Inc. and Sumitomo Mitsui Banking Corp. would each lend about $400 million.
Other banks would lend smaller amounts.
Back to business?
The advancing negotiations are the latest sign that the conglomerate is returning to normalcy after being hit by allegations of malfeasance by US short seller Hindenburg Research.
The impact had been such that it at one point shaved off more than $150 billion from the company’s stocks, which Adani officials have repeatedly denied.
As part of its return to capital markets after this, the group’s flagship firm already raised 12.5 billion rupees by issuing local-currency bonds in July.
GQG Partners
Veteran investor Rajiv Jain’s GQG Partners LLC has also purchased a stake in group firms.
It now holds stakes in five of the 10 Adani Group firms.
Rajiv Jain had said in an interview that GQG would like to be one of the largest investors in the Adani Group within five years.
Its combined holdings in five Adani stocks – Adani Enterprises Ltd, Adani Ports, Adani Green Energy Ltd, Adani Transmission Ltd and Ambuja Cements — is now worth close to Rs 26,000 crore.
Nothing confirmed yet
The transaction has not yet been finalized and the terms could change.
If the deal closes, it would be the fourth-biggest loan in Asia outside Japan this year
