A consortium of banks is currently in discussions to collectively provide approximately $250 million each as part of a syndicated loan totaling around $3.5 billion. This loan is intended to refinance the debt associated with the Adani Group’s acquisition of Ambuja Cements Ltd. According to sources familiar with the matter, as reported by Bloomberg News, internal approval for the deal has been secured.
Among the participants in this consortium, three major banks – Barclays Plc, Deutsche Bank AG, and Standard Chartered Plc – are actively contributing to this syndicated loan, with the aim of supporting billionaire Gautam Adani’s conglomerate.
Initially, there were considerations among some financial institutions to provide loans of $400 million each, potentially making it one of the most significant loan deals in Asia for the year, as previously reported by Bloomberg, citing insider sources. However, there have been no recent updates regarding the status of this larger group of banks involved in the discussions.
This development marks a significant step in the Adani Group’s efforts to address allegations made earlier this year by US short-seller Hindenburg Research. These allegations were strongly refuted by Adani officials. It is important to note that these allegations had a negative impact on the stocks and bonds of Adani Group companies, leading to a pause in negotiations with global banks for debt refinancing, as reported by Bloomberg in February.
In 2022, the Adani Group expanded its reach by acquiring the Indian assets of Switzerland’s Holcim Ltd. This expansion was part of the conglomerate’s diversification strategy, extending its interests beyond its core businesses in ports, power plants, and coal mines to include sectors such as data centers, airports, digital services, retail, and media.
It is crucial to emphasize that the transaction has not yet been finalized, and the terms of the deal are subject to potential changes as the negotiations progress.