Adani Group nears securing $3.5 bn loan for Ambuja Cements acquisition

The Adani Group, led by billionaire Gautam Adani, is on the verge of securing a substantial $3.5 billion loan. The funds will be utilized to refinance existing debt incurred during the acquisition of Ambuja Cements Ltd. This impending deal stands out as one of Asia's largest loans this year, reflecting the confidence creditors have in the Adani conglomerate.

Sources familiar with the matter, requesting anonymity due to its sensitive nature, have indicated that the agreement could be finalized within the coming week. The loan is anticipated to be priced between 450-500 basis points all-in-costs over the secured overnight finance rate, encompassing three tenors: 6-month, 18-month, and 3-year periods, as per a Bloomberg report.

The financing initiative follows a period of extensive negotiations with banks and comes in the wake of fraud allegations made by US-based short-seller Hindenburg Research earlier in the year. These allegations caused a significant drop in the company's bonds and shares. It is crucial to emphasize that Adani vehemently refuted these claims.

In a proactive move to strengthen their financial position, Adani's flagship company had already raised ₹12.5 billion ($151 million) in July by issuing local-currency bonds. This strategic financial manoeuvre aimed to dispel concerns arising from the Hindenburg allegations, paving the way for the group's current pursuit of this substantial loan.

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