Gautam Adani-led Adani Group is reportedly in talks with Barclays Plc, Deutsche Bank AG and Standard Chartered Plc to raise between $600 million and $750 million to refinance the debt taken to fund its purchase Ambuja Cements Ltd.
According to a report by Bloomberg, the loan would be syndicated and Gautam Adani is also in discussions with other lenders, as it seeks to refinance as much as $3.8 billion of a loan facility taken for its Ambuja acquisition.
The Group had acquired ACC and Ambuja Cement from Holcim in September 2022 for about $4.6 billion. The deal had made the Adani Group the second biggest cement company in India with a capacity of 68 million tonnes.
If finalised, the loan of $750 million would be a part of broader refinancing. However, the deal is not yet finalised and the amount can still change.
The Adani Group has been debt raising capital from various foreign banks to fund its growth across all sectors. According to media reports, it generates over 83% of its operating income from core utility and infrastructure businesses.
AdaniConneX sold $213 million worth of senior debt to finance data center construction in June, while flagship Adani Enterprises Ltd. firm raised 12.5 billion rupees through a local currency bond sale earlier this month.
Also read: Isha Ambani-led Reliance Retail Is All Set To Compete With Tata’s Fashion Brand Zudio; Here’s How
The discussions around syndicated loans came six months after US short seller Hindenburg accused the Adani Group of widespread corporate malfeasance in January, prompting a surge in dollar borrowing costs. However, Gautam Adani, in the annual general meeting, denied all the allegations and called it a stunt to hurt the image of the company.