One of Asia’s largest syndicated loan deals of the year may be sought by Adani Group as it looks to refinance debt acquired to finance its acquisition of Ambuja Cements.
It is one of Asia’s biggest deals
Adani would pay back at least $300 million on the original Ambuja facility, and banks are likely to refinance a total of $3.5 billion.
By September, it hopes to raise this amount.
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Parties entangled
It has been in discussions with lenders to refinance the debt taken for the Ambuja acquisition for a number of months.
Each of the following institutions would lend around $400 million: DBS Group Holdings Ltd., First Abu Dhabi Bank PJSC, Mizuho Financial Group Inc., Mitsubishi UFJ Financial Group, Inc., and Sumitomo Mitsui Banking Corp.
Other banks would provide smaller loans.
Back to business?
The company has been beset with charges of wrongdoing by American short seller Hindenburg Research, but the latest indication that things are getting back to normal is that the negotiations are moving forward.
Adani officials have consistently rejected the impact, which at one point resulted in a loss of more than $150 billion from the company’s shares.
The group’s flagship company previously raised 12.5 billion rupees by selling local-currency notes in July as part of its eventual return to the capital markets.
GQG Partners
GQG Partners LLC, an experienced investor, has also acquired a stake in group companies.
It now has shares in five of the ten Adani Group companies.
In an interview, Rajiv Jain stated that GQG hoped to rank among the top investors in the Adani Group within five years.
Adani Enterprises Ltd, Adani Ports, Adani Green Energy Ltd, Adani Transmission Ltd, and Ambuja Cements are the five Adani companies in which it has a joint stake, and their combined market value is presently close to Rs 26,000 crore.
Nothing is definite as of yet.
The terms of the transaction have not yet been completed and may change.
That would be the fourth-largest loan in Asia outside of Japan if the agreement is finalized.