Adani In Discussions For $3.5 Bn Loan, Among Top Deals In Asia This Year

The Adani Group is currently in discussions with banks regarding the refinancing of the debt it incurred to finance its acquisition of Ambuja Cements. This refinancing is expected to be one of Asia's largest syndicated loan deals this year, with banks likely refinancing a total of USD 3.5 billion. Sources familiar with the matter, who preferred to remain anonymous, revealed that Adani will repay at least USD 300 million of the original Ambuja facility.

The conglomerate, led by billionaire Gautam Adani, has been engaged in discussions with lenders for several months as it aims to refinance up to USD 3.8 billion in debt related to the Ambuja acquisition. DBS Group Holdings, First Abu Dhabi Bank PJSC, Mizuho Financial Group Inc, Mitsubishi UFJ Financial Group, Inc., and Sumitomo Mitsui Banking Corp. are each expected to provide approximately USD 400 million in financing, while other banks will offer smaller amounts.

These ongoing negotiations signify a return to business as usual for the conglomerate after facing allegations of wrongdoing by US short-seller Hindenburg Research, which temporarily caused a significant drop in the company's stock value, exceeding USD 150 billion at one point. Adani officials have consistently refuted these allegations.

It's important to note that the transaction has not been finalized, and the terms are subject to change. If completed, this deal would rank as the fourth-largest loan in Asia outside of Japan for the year, according to data compiled by Bloomberg. Adani Group declined to comment on routine business matters and speculation.

Representatives for SMBC and First Abu Dhabi did not respond to Bloomberg's email requests for comment, while spokespeople for MUFG and Mizuho declined to comment. A DBS representative stated that the bank does not comment on specific deals.