Adani Group in talks with banks to refinance $380 million loan for Ambuja Cements acquisition
Adani Group, one of India’s leading conglomerates, is in talks with multiple banks worldwide to refinance a $380 million loan it had taken to acquire Ambuja Cements last year. The conglomerate is considering increasing the maturity period of the original loan and has initiated talks with various banks for the same. The information comes from sources familiar with the development, as reported by Bloomberg.
The move is significant for Adani Group as it will determine the global credit line the conglomerate can access in the current circumstances. The development comes after American short seller Hindenburg Research accused the group of fraudulent activity, which the group vehemently denied.
Adani Group aims to complete the refinancing process within three to four months, with most of the existing lenders expected to participate. The group is in talks with banks such as Barclays, Deutsche Bank AG, Standard Chartered, and Mitsubishi UFJ Financial Group. Some lenders have already sent their international credit teams to assess the refinancing proposal, but no agreement has been reached yet.
Adani Group had taken the original loan to acquire Ambuja Cements, making it the second-largest cement producer in India after Swiss-French MNC Holcim. The group had purchased a stake in Ambuja Cements and ACC, another Indian cement company, from Holcim. To finance the deal with Holcim, Adani Group’s Mauritius-based unit, Endeavour Trade and Investment, had taken a bridge loan with maturities in 2023 and 2024.
The refinancing process will help Adani Group to ease its debt burden and ensure a more stable financial position. The conglomerate has been actively expanding its presence in various sectors and has recently announced a plan to become a net-zero company by 2025.
In conclusion, Adani Group’s move to refinance its loan highlights the importance of maintaining a strong credit line in the current economic scenario. The development is crucial for the conglomerate, which is facing allegations of fraudulent activity, and will help it to strengthen its financial position.
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