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Adani Group in Discussions with International Banks for $3.5 Billion Syndicated Loan

Sep 14, 2023

By: BlinkX Research Team

The Adani Group is currently in discussions with banks regarding the refinancing of debt that was initially used to acquire Ambuja Cements Ltd. This potential deal could result in one of the largest syndicated loan transactions in Asia for the year. banks may refinance a total of $3.5 billion. 

As part of the arrangement, Adani is expected to repay at least $300 million of the original Ambuja facility. Noteworthy lenders involved include DBS Group Holdings Ltd., First Abu Dhabi Bank PJSC, Mizuho Financial Group Inc., Mitsubishi UFJ Financial Group, Inc., and Sumitomo Mitsui Banking Corp. These banks are anticipated to provide approximately $400 million each, while others will contribute smaller amounts. 

This development signals a return to normalcy for the Adani conglomerate, which faced allegations of misconduct by US shortseller Hindenburg Research, temporarily causing a significant drop in the company's stock value. The transaction is still in the negotiation phase and its terms may be subject to change. If finalized, it would rank as the fourth-largest loan in Asia, excluding Japan, for the year.