Adani Group in talks with foreign banks to raise $4.5 billion

0

Adani Group in talks with foreign banks to raise $4.5 billion

New Delhi: The Adani Group, led by billionaire industrialist Gautam Adani, is seeking to raise up to $4.5 billion through a combination of overseas lending instruments and is discussing the same with more than one dozen foreign banks. This will be one of the largest loan fund raisings by an Indian company in foreign currency.
The latest development comes nearly a month after the group acquired the local business of cement maker Holcim in India’s biggest cement takeover.
The loan structures offered by the Adani Group include mezzanine financing, equity-backed bridge loans to be repaid in cash and an 18-month senior debt facility, according to several bankers with knowledge of the matter cited by Economic Times.

The last of these structured instruments could be refinanced later either by a long-term bond or by a loan. It may be noted here that permanent instruments such as bonds offering pre-specified coupons are usually sold abroad to raise large amounts of liquidity.

Some of the banks involved in talks with the group include BNP Paribas, Citi, JP Morgan, MUFG, Mizuho Bank, SMBC as well as some of the Middle East-based lenders.

Related News

Adani Group Apollo Hospitals in Talks to Take Majority Stake in Metropolis Healthcare Report

Adani Group and Apollo Hospitals in Talks to Take Majority Stake in Metropolis Healthcare: Report

Related News

Flashback The significance of No. 20 in Gautam Adanis' life relationship with Lady Luck

[Throwback] The importance of No. 20 in the life of Gautam Adani and his relationship with Lady Luck

The Adani Group plans to use the funds generated from the latest fundraising to partially finance the acquisition of Holcim’s stakes in Ambuja Cements and ACC. All financing lines were previously underwritten by Deutsche Bank, Barclays and Standard Chartered Bank. These are now split, with other banks also participating in the transactions.

The senior debt facility will likely raise up to $3 billion, while the mezzanine line could raise $1 billion. The bridge loan, with a term of one to three years, is set at $500 million and would be repaid in cash.

Related News

Big win for Gautam Adani Adani Group to acquire assets of Holcim India for 105 billion

Big win for Gautam Adani: Adani Group acquires assets of Holcim India for $10.5 billion

Mezzanine financing is a combination of debt and equity financing that allows the lender to convert debt into equity in the event of default.

Meanwhile, the Adani Group is researching the lending capacity of each bank, each lending between $200 million and $500 million. “Adani Group is looking to expand syndication initially limited to just three banks,” shared an executive involved in the process.

The Adani-led group is buying the two companies for $10.5 billion and plans to bring in $3 billion as developer equity. Holcim holds a 63.19% interest in Ambuja Cements and 54.33% in ACC through its subsidiaries.

Open offers for Ambuja Cements and ACC shareholders will begin on July 6 and close on July 19.

Share.

About Author

Comments are closed.