In what may be one of Asia’s largest syndicated loan deals of the year, Adani Group is in discussions with banks to refinance debt that was taken on to support its acquisition of Ambuja Cements Ltd.
With lenders grouped into three groups, the Adani Group is in negotiations with banks to refinance the debt it took on to finance the acquisition of Ambuja Cements Ltd. This might be one of Asia’s largest syndicated loan deals of the year.
According to persons familiar with the situation who declined to be identified because the subject is confidential, banks are likely to refinance a total of $3.5 billion. According to them, Adani would pay back at least $300 million on the original Ambuja project.
The Indian conglomerate, owned by billionaire Gautam Adani, has been in discussions with lenders for a number of months in order to restructure the up to $3.8 billion in debt it took on to buy Ambuja.
According to the sources, $400 million would be lent by each of DBS Group Holdings Ltd., First Abu Dhabi Bank PJSC, Mizuho Financial Group Inc., Mitsubishi UFJ Financial Group, Inc., and Sumitomo Mitsui Banking Corp. Smaller loans would be made by other banks.
The conglomerate has been shaken by accusations of wrongdoing by US shortseller Hindenburg Research, which at one time allegedly stole more than $150 billion from the company’s equities. The progressing conversations are the latest indication that the conglomerate is reverting to a more normal course of business. Officials from Adani have vehemently refuted the allegations.
The terms have not yet been agreed upon and could potentially alter. According to data gathered by Bloomberg, if the deal is completed, it will rank as the fourth-largest loan in Asia outside of Japan this year.
While MUFG and Mizuho representatives both declined to comment, SMBC and First Abu Dhabi did not respond to Bloomberg’s email request for comment. According to a DBS spokesman, the bank declines to comment on particular transactions.
The group’s flagship company has raised 12.5 billion rupees by selling local-currency notes in July as part of its post-Hindenburg return to the capital markets. GQG Partners LLC, a seasoned investor, has also acquired a stake in group companies.