Billionaire Gautam Adani-led Adani Group has signed an agreement to refinance $3.5 billion of loans which the conglomerate had taken to acquire ACC Ltd and Ambuja Cement, the company said in a statement on Friday.
“The re-financing programme of USD 3.5 billion has been concluded with a clutch of international banks with debt maturity of up to 3 years, testifies the strong support and access to capital, supplementing the solid capital prudency adopted at all portfolio companies,” it said.
DBS Bank, First Abu Dhabi Bank, Mizuho Bank and MUFG Bank acted as Mandated Lead Arranger and Bookrunners and Underwriter 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 company said.
ET on Friday reported that the agreement was to go through, and that at least 18 global banks have agreed to join the consortium led by Barclays, Deutsche Bank and Standard Chartered among others, for refinancing the debt that helped fund the biggest M&A in India’s building-materials industry.
The conglomerate’s cement vertical is set to save around $300 million as a result of the refinancing, it said. “This showcases Adani’s robust access to the global financial market and strong liquidity position. This achievement reflects our commitment to financial stability and growth,” the company said.
ET had reported on March 28 that the Adani Group was seeking to renegotiate the terms of acquisition financing of ACC and Ambuja Cements.
Adani Group has so far repaid around $2 billion of Ambuja and ACC loans, which included $1 billion of promoter advances taken from three foreign banks as a loan against shares (LAS) facility.
Adani bought the India assets of Switzerland’s Holcim Ltd. in 2022, as the conglomerate looked to move beyond its core business of operating ports, power plants and coal mines and into areas like data centers, airports, digital services, retail and media.