Adani Group
Adani Group in talks for major debt refinancing first time after Hindenburg report
Mumbai: The Adani Group is engaged in discussions with lenders, including global banks, to refinance a loan facility of up to $3.8 billion that was obtained for the acquisition of Ambuja Cements Ltd. last year, Bloomberg reported.
The conglomerate, owned by Gautam Adani, is considering the option of converting the original loan into longer-term debt and has initiated talks with individual banks regarding this plan, the report said.
The refinancing effort serves as a significant test to determine if global credit lines will reopen for the company after allegations of corporate misconduct made by US short-seller Hindenburg in January. Adani has denied these allegations.
The refinancing process is expected to be concluded within three to four months, with most of the existing lenders anticipated to participate, said the report.
While a request for comment from Adani went unanswered, banks such as Barclays Plc, Deutsche Bank AG, Standard Chartered Plc, and Mitsubishi UFJ Financial Group Inc. are reportedly in discussions to participate in the refinancing deal.
Some lenders have sought approval from their respective international credit teams for the arrangement, although the deal is not yet finalized and may not proceed.
If the plan moves forward, it would signify the conglomerate's return to normal business operations following months of damage control in response to Hindenburg's severe criticisms that significantly impacted the company's stocks by more than $150 billion at one point, the report said.
A panel of experts appointed by the Indian Supreme Court recently stated in a report that there was no regulatory failure or wrongdoing behind the extreme stock fluctuations of Adani.
However, a verdict from India's securities watchdog is expected in August after completing its investigation into Hindenburg's allegations against the Adani Group.
Adani's acquisition of Holcim AG's Indian cement assets last year positioned the conglomerate as the second-largest cement producer in India. To finance the deal, bridge loans were obtained by Mauritius-domiciled Endeavour Trade & Investment, the Adani Group entity responsible for acquiring Holcim's cement business, with maturity dates in 2023 and 2024.
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