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Adani Group Eyes Record-Breaking $3.5 Billion Loan Deal with Global Banks

Adani Group Eyes Record-Breaking $3.5 Billion Loan Deal with Global Banks

Written by Sanjay Kumar

Adani Group, a leading Indian conglomerate led by billionaire Gautam Adani, is reportedly in advanced discussions with global banks to secure a $3.5 billion loan, in what could be one of Asia’s most significant syndicated loan deals this year. The loan is intended to refinance debt incurred during its acquisition of Ambuja Cements Ltd, and it signifies Adani’s efforts to regain financial stability and normalcy following recent challenges.

Adani Group is currently engaged in negotiations with banks to refinance a substantial portion of the $3.8 billion debt taken on for its Ambuja acquisition, a process that has been ongoing for several months. As part of this refinancing, Adani is expected to repay a minimum of $300 million from the original Ambuja facility.

The participating banks are divided into three categories, with DBS Group Holdings Ltd., First Abu Dhabi Bank PJSC, Mizuho Financial Group Inc, Mitsubishi UFJ Financial Group, Inc., and Sumitomo Mitsui Banking Corp. each contributing approximately $400 million to the loan. Other banks are expected to provide smaller amounts of financing.

These developments mark a return to normal business operations for Adani Group, which had faced significant challenges following allegations of wrongdoing by US short-seller Hindenburg Research. These allegations had resulted in a substantial reduction in the company’s stock value, wiping out over $150 billion in market capitalization. Adani officials have consistently denied these claims.

While the transaction has not yet been finalized, it holds the potential to become the fourth-largest loan in Asia outside Japan in 2023, according to data compiled by Bloomberg.

Bank Responses:

At the time of reporting, Sumitomo Mitsui Banking Corp. and First Abu Dhabi Bank PJSC did not respond to Bloomberg’s requests for comments. Meanwhile, spokespeople for Mitsubishi UFJ Financial Group, Inc. and Mizuho Financial Group Inc. declined to comment. A representative from DBS Group stated that the bank does not comment on specific deals.

Adani Group’s Recent Financial Moves:

Adani Group has been actively seeking to rebuild its presence in capital markets. In July, its flagship firm successfully raised 12.5 billion rupees by issuing local-currency bonds. Additionally, veteran investor Rajiv Jain’s GQG Partners LLC has acquired a stake in Adani Group firms, signifying investor confidence in the conglomerate’s resurgence.

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