Adani Group, the Indian conglomerate led by billionaire Gautam Adani, is currently in negotiations with banks for the refinancing of debt taken on to finance its acquisition of Ambuja Cements Ltd. This refinancing deal could be one of the largest syndicated loan deals in Asia this year, involving banks grouped into three categories.
According to sources familiar with the matter, banks are expected to refinance a total of $3.5 billion, with Adani committing to repay at least $300 million from the original Ambuja facility. The talks have been ongoing for several months as Adani seeks to refinance approximately $3.8 billion worth of debt taken for its Ambuja acquisition.
The banks involved in the deal include DBS Group Holdings Ltd., First Abu Dhabi Bank PJSC, Mizuho Financial Group Inc., Mitsubishi UFJ Financial Group, Inc., and Sumitomo Mitsui Banking Corp. Each of these banks is expected to lend around $400 million, while other banks are anticipated to provide smaller amounts.
These ongoing negotiations signal Adani’s return to a more regular business environment after facing allegations of wrongdoing by U.S. short-seller Hindenburg Research. These allegations, at one point, led to a significant drop in the company’s stock value, wiping out over $150 billion in market capitalization. Adani officials have repeatedly denied these claims.
It’s important to note that the transaction has not been finalized, and the terms of the deal could still change. However, if it proceeds, this refinancing deal would rank as the fourth-largest loan in Asia outside Japan this year, according to data compiled by Bloomberg.
Sumitomo Mitsui Banking Corp. and First Abu Dhabi Bank have not responded to Bloomberg’s request for comments, while MUFG and Mizuho declined to comment. A representative for DBS mentioned that the bank does not comment on specific deals.
As part of its efforts to return to capital markets following the Hindenburg controversy, Adani Group’s flagship firm raised 12.5 billion rupees by issuing local-currency bonds in July. Additionally, veteran investor Rajiv Jain’s GQG Partners LLC acquired a stake in group firms, signaling renewed investor confidence in the group.
This debt refinancing initiative demonstrates Adani’s commitment to addressing its financial obligations and ensuring the sustainability of its business operations.