Adani Group Lenders $750 Million Loan for Ambuja Debt Refinancing

Adani Group lenders ponder a $750M loan to ease Ambuja debt! A game-changing financial move set to boost Ambuja's future.

In a strategic move to refinance the debt incurred during the acquisition of Ambuja Cements Ltd., Adani Group is in advanced discussions with prominent lenders, including Barclays Plc, Deutsche Bank AG, and Standard Chartered Plc. People familiar with the matter revealed that the collective loan amount considered ranges from $600 million to $750 million. However, the figures might change.

The loan, if executed, will be syndicated, further diversifying the financing arrangements for Adani Group's ambitious projects. Alongside the aforementioned lenders, the conglomerate is also in talks with other financial institutions to refinance a substantial $3.8 billion loan facility utilised to acquire Ambuja Cements.

The discussions come half a year after the Adani Group faced allegations of corporate misconduct from US short seller Hindenburg in January. These accusations led to a temporary spike in dollar borrowing costs. However, Adani Group firmly denied all the allegations, and in recent times, its cost of capital has significantly reduced as its debt metrics improved.

With the conglomerate's financial health upward trajectory, Adani Group has renewed its focus on fundraising activities.

In June, AdaniConneX successfully raised $213 million through senior debt issuance for the construction of data centres. Similarly, Adani Enterprises Ltd. secured 12.5 billion rupees via a local currency bond sale earlier this month, further bolstering the group's financial position.

Last year's acquisition of Holcim Ltd.'s Indian cement assets catapulted Adani Group to become India's second-largest producer of construction material. To finance this transformative deal, bridge loans maturing in 2023 and Mauritius-domiciled Endeavour Trade & Investment, the Adani Group entity responsible for the acquisition, secured 2024.

All parties involved, including Adani Group, Barclays, Deutsche Bank, and Standard Chartered, have declined to comment on the ongoing discussions. However, if the loan is successfully secured, it will play a significant role in the broader refinancing efforts, ensuring Adani Group maintains its growth trajectory and reinforces its position as a major player in the Indian business landscape.