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Adani group in talks with banks to refinance $3.5 billion of debt taken to acquire Holcim’s cement business

Conglomerate is negotiating with lenders to refinance debt, which could be one of the largest syndicated loan deals of year in Asia

Our Special Correspondent Mumbai Published 14.09.23, 06:29 AM
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The Adani group is reportedly in talks with banks to refinance $3.5 billion of debt taken to acquire Holcim’s cement business in 2022.

A Bloomberg report said the conglomerate is negotiating with the lenders to refinance the debt, which could be one of the largest syndicated loan deals of the year in Asia.


The banks are likely to refinance a cumulative amount of $3.5 billion, with the conglomerate repaying $300 million of the $3.8 billion loan.

Adani has been in talks with lenders for at least three months to refinance the loan.

The report said DBS Group Holdings, First Abu Dhabi Bank PJSC, Mizuho Financial Group, Mitsubishi UFJ Financial Group and Sumitomo Mitsui Banking Corp would each lend about $400 million to Adani.

While the terms of the transaction may change, it would be the fourth-biggest loan in Asia outside Japan this year, according to Bloomberg-compiled data.

Officials from the group declined to comment on the development.

Roiled by the allegations of Hindenburg Research in January, the group has been recovering from the damage following investments by GQG in its listed firms since March and the conglomerate trimming debt by repaying share-backed loans.

Last month, it was hit by fresh allegations from The Organised Crime and Corruption Reporting Project (OCCRP) that it used associates to secretly invest hundreds of millions of dollars through “opaque” Mauritius-based investment funds to fuel the rise in group stocks.

The conglomerate had vehemently denied the charges made by both Hindenburg and OCCRP.

Amid a recovery in its stock prices, GQG increased its stake in Adani Ports & Special Economic Zone to 5.03 per cent in August. It now holds stakes in five of the 10 Adani Group firms.

RIL Retail plan

Reliance Retail is in talks with existing investors including the sovereign wealth funds of Singapore, Abu Dhabi and Saudi Arabia for combined investments of around $1.5 billion, three sources said, according to Reuters.

The talks with investors are part of an internal target to raise $3.5 billion which the company wants to close by September.

Of that, QIA last month announced a $1 billion investment and KKR & Co this week $250 million.

Singapore’s GIC, the Abu Dhabi Investment Authority (ADIA) and Saudi Arabia’s Public Investment Fund (PIF) are looking to invest at least $500 million each in Reliance Retail at a valuation of $100 billion, one of the sources told Reuters.

GIC, ADIA declined to comment, while PIF did not respond to requests for comment. Reliance said: “we do not comment on media speculation and rumours”.

A second source said some of the three investors could end up putting in less than $500 million, and talks were also on with at least one or two further investors.

“All the three investors have evaluated the company quite seriously,” said the first of the three sources, all of whom declined to be named as the discussions are private.

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