Adani Group seeks additional lenders for $ 3.8B refinancing
ECONOMY & POLICY

Adani Group seeks additional lenders for $ 3.8B refinancing

It was reported by individuals familiar with the ongoing discussions that the Adani Group is in talks to involve a minimum of five new international banks in the process of refinancing $ 3.8 billion in loans obtained for the acquisition of ACC and Ambuja Cement last year. Most of Adani's current lenders, including the lead banks - Standard Chartered, Barclays, and Deutsche Bank - will participate in the refinancing round. The group has also initiated discussions with two Taiwanese banks, a Malaysian bank, and others to expand the consortium of lenders for syndicating the aforementioned loan. This syndication is likely to involve an extension of the payment period by three years.

A person knowledgeable about the discussions stated that meetings with lenders are presently in progress, and the group aims to finalise a loan agreement with the consortium by mid-July. An email sent to the Adani Group has not received a response as of the time of press on Monday. Standard Chartered, Barclays, and Deutsche Bank declined to provide comments.

In an effort to avoid concentration risk for the existing lenders, the current lenders have expressed their comfort in renegotiating the loan terms. However, they have requested the group to bring in additional lenders into the consortium. A second individual familiar with the discussion mentioned that the inclusion of new lenders would also enhance the group's creditworthiness perception, particularly when the group plans to tap into overseas bond markets later this year.

The first repayment installment of the aforementioned loans is due in February 2024.

Adani Group was seeking to renegotiate the terms of outstanding loans of approximately $ 4 billion acquired in August last year for the purchase of its cement assets - ACC and Ambuja Cements - from the Switzerland-based Holcim group.

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It was reported by individuals familiar with the ongoing discussions that the Adani Group is in talks to involve a minimum of five new international banks in the process of refinancing $ 3.8 billion in loans obtained for the acquisition of ACC and Ambuja Cement last year. Most of Adani's current lenders, including the lead banks - Standard Chartered, Barclays, and Deutsche Bank - will participate in the refinancing round. The group has also initiated discussions with two Taiwanese banks, a Malaysian bank, and others to expand the consortium of lenders for syndicating the aforementioned loan. This syndication is likely to involve an extension of the payment period by three years. A person knowledgeable about the discussions stated that meetings with lenders are presently in progress, and the group aims to finalise a loan agreement with the consortium by mid-July. An email sent to the Adani Group has not received a response as of the time of press on Monday. Standard Chartered, Barclays, and Deutsche Bank declined to provide comments. In an effort to avoid concentration risk for the existing lenders, the current lenders have expressed their comfort in renegotiating the loan terms. However, they have requested the group to bring in additional lenders into the consortium. A second individual familiar with the discussion mentioned that the inclusion of new lenders would also enhance the group's creditworthiness perception, particularly when the group plans to tap into overseas bond markets later this year. The first repayment installment of the aforementioned loans is due in February 2024. Adani Group was seeking to renegotiate the terms of outstanding loans of approximately $ 4 billion acquired in August last year for the purchase of its cement assets - ACC and Ambuja Cements - from the Switzerland-based Holcim group. Also read: Construction of Triyuginarayan-Toshi motor road gets approval NHAI to revamp Thakurdwara flyover for GT road decongestion

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