Adani Group looks to refinance debt of $3.5 billion taken to buy Ambuja Cements: Report

Adani Group is reportedly in talks to refinance a debt taken to fund its purchase of Ambuja Cements. As per reports, the lenders have been divided into three categories for what is touted to be one of Asia’s largest syndicated loans this year – a total of $3.5 billion.

According to Bloomberg that reported on this development, Adani is expected to repay at least $300 million on the original Ambuja facility, as per people in the know. This comes after several months of talks between the Gautam Adani-backed conglomerate and lenders. The conglomerate is aiming to refinance as much as $3.8 billion worth of debt.

As per the report, around $400 million would be lent by DBS Group Holdings, First Abu Dhabi Bank, Mizuho Financial Group, Mitsubishi UFJ Financial Group and Sumitomo Mitsui Banking Corp each, while other banks would lend smaller banks.

The transaction is yet to be finalised and the terms could still change. According to the report, if the deal closes, it could be the fourth-biggest loan in Asia outside Japan this year.

Meanwhile, Rajiv Jain-led GQG Partners doubled down its bet on the Adani Group in a matter of five months. Its combined holdings in five Adani stocks – Adani Enterprises Ltd, Adani Ports, Adani Green Energy Ltd, Adani Transmission Ltd and Ambuja Cements — is now worth close to Rs 26,000 crore.

Rajiv Jain had said in an interview that GQG would like to be one of the largest investors in the Adani Group within five years.

GQG Partners subsequently bought an 8.1 per cent stake in India's Adani Power for $1.1 billion via block deals on August 16. It then raised its stake in Adani Ports And Special Economic Zone Ltd on August 17 to 5.03 per cent.

Also read: AEL, Adani Power, Adani Ports: Adani stocks in focus ahead of SC hearing on Hindenburg allegations

Also read: Adani Wind receives certification for India’s largest turbine