The conglomerate aims to raise $2.5 billion through offshore and domestic borrowing to replace previous debts, marking a significant step in its ongoing financial restructuring amid recent market pressures.
Adani Group is preparing a $2.5bn refinancing that would become India’s biggest offshore loan this year, as the ports-to-mining conglomerate moves to replace debt raised for its purchase of two cement companies. According to Business Standard and The Economic Times, the financing is being split into two parts to draw on both offshore and domestic liquidity and to lower borrowing costs in a fast-changing credit market.
The first leg is expected to be arranged through Endeavour Trade and Investment Ltd., a Mauritius-based special purpose vehicle owned by the Adani family. People familiar with the matter told the papers that the vehicle is seeking $1.5bn in the form of an 18- to 24-month bridge loan, priced at about 150 basis points over the US secured overnight financing rate, or SOFR. That facility would later be replaced by rupee borrowing from Indian lenders including State Bank of India and HDFC Bank.
A separate arm of the group, Adani Infra (India) Ltd., is said to be pursuing a five-year, $1bn loan under the Reserve Bank of India’s external commercial borrowing window. The people said that tranche could be priced at about 275 basis points over SOFR. The group is in talks with lenders including DBS Group Holdings, Mitsubishi UFJ Financial Group, Sumitomo Mitsui Banking Corp. and Standard Chartered, and the deal could close before the end of October.
The refinancing comes after a period in which Gautam Adani’s group has worked to steady investor confidence. Reuters has reported that the family has already repaid large amounts of share-backed borrowing, while the Associated Press noted that the group has also faced heavy market and legal pressure since the Hindenburg Research allegations. More recently, Adani won dismissal of US securities fraud charges, and Adani Airport Holdings said it would raise nearly 98.25bn rupees through a stake sale to Temasek and BlackRock-linked funds. The group is also planning a further $1bn refinancing leg in 2027, according to the people familiar with the matter.
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