Adani Group is in talks with lenders, including global banks, to refinance a loan facility of up to $3.8 billion used for the acquisition of Ambuja Cements Ltd. The conglomerate is considering converting the loan into longer-term debt and has initiated discussions with banks. This comes as a test of global credit lines following allegations of corporate malfeasance by Hindenburg. Adani has denied these allegations.
Adani expects to conclude the refinancing process in three to four months, with most existing lenders participating. Banks such as Barclays, Deutsche Bank, Standard Chartered, and MUFG are in talks for the deal, seeking approval from their international credit teams. The deal is not yet finalized and may not proceed as planned.
Why it matters
If implemented, the refinancing plan would indicate Adani's recovery after facing damage control due to Hindenburg's allegations that caused a substantial drop in stocks. Adani's acquisition of Holcim AG's Indian cement assets made them the country's second-largest cement producer. Bridge loans were obtained by Endeavour Trade & Investment, an Adani Group entity, to finance the acquisition.