With One Of Top Asia Loans, Adani To Refinance $3.8 Billion Debt

The Adani Group is in talks with big banks for a loan of $3.5 billion dollars. The talks have been going on for many months as it is trying to refinance almost $3.8 billion debt which was taken during the acquisition of Ambuja Cements. With this, the Adani Group could be leading the largest syndicated loan deals of the year.

This could become one of the top loans in Asia with the lenders grouped into three categories. With the global banks likely to refinance $3.5 billion, the Adani Group is expected to repay near to $300 million on the original Ambuja facility, the Business Standard reported.

Leading banks, DBS Group Holdings Ltd., First Abu Dhabi Bank PJSC, Mizuho Financial Group Inc, Mitsubishi UFJ Financial Group, Inc. and Sumitomo Mitsui Banking Corp. is expected to lend about $400 million, with other banks lending smaller amounts, said the mint.

The advancements happening at the negotiations are being considered as a sign of return of the group into normal after the publication of Hindenburg report earlier in the year. Though Adani Group had repeatedly denied the allegations of the Hindenburg report, the report had taken off stocks of the company worth almost $150 billion.

The transactions regarding the loan has not been finalised so far, the terms to this could change. If the loan deal clinches, this could become the biggest loan in Asia, outside Japan, the mint reported citing Bloomberg.

The return of the Adani Group to the capital markets, can be seen from market performance – with the group raising Rs. 12.5 billion in July by issuing local currency bonds. Through various deals, the GQG Partners LLC has also invested in the groups stake, said the mint.