Adani secures US$ 3.5 bn loan from global banks to refinance its cement business

The cement arm of billionaire Gautam Adani said on Friday it had secured a US$ 3.5 billion loan from a clutch of international banks to refinance debt it had taken to buy ACC Ltd and Ambuja Cements last year. The two purchases of last year had made Adani Group the second-largest producer of cement in India. 
The transaction was financed by 10 global banks. DBS Bank, First Abu Dhabi Bank, Mizuho Bank and MUFG Bank acted as mandated lead arrangers bookrunners and underwriters to the transaction.

In addition, Barclays Bank PLC, BNP Paribas, Deutsche Bank AG, ING Bank, Sumitomo Mitsui Banking Corporation and Standard Chartered Bank acted as mandated lead arrangers and bookrunners for the transaction.
The financing comes amid a series of reports that have been accusing the port-to-power conglomerate of business malpractices and called the business empire highly leveraged. The Group is facing allegations since a report by Hindenburg Research was published in January this year, causing the company’s shares to plunge sharply earlier in the year and most stocks are yet to recover to their previous highs. Adani Group has always denied any wrongdoing. 

“This showcases Adani’s robust access to the global financial market and strong liquidity position. This reflects our commitment to financial stability and growth. This facility will result in an overall cost saving of US$ 300 million for the Adani Cement vertical,” said Adani Cement in a statement. It added that the US$3.5 billion facility marks the continued execution of the capital management plan outlined in Sep 2022 that will see step-wise planned deleveraging of Adani Cement. (Courtesy: Indian Express)