adani: Adani Group looks to rope in more lenders to refinance $3.8 billion

The Adani Group is in discussions to rope in no less than 5 new worldwide banks because it appears to refinance $3.8 billion of loans of various tenors taken for the acquisition of ACC Restricted and Ambuja Cement final 12 months, mentioned folks conscious of the continuing discussions.

In response to these folks, nearly all of Adani’s present lenders, together with the lead banks – Normal Chartered, Barclays and Deutsche Financial institution – will take part within the refinancing spherical. The group has additionally begun discussions with two Taiwanese banks and a Malaysian financial institution amongst others to increase the consortium of lenders to syndicate the above mortgage, which is able to possible entail extension of the fee tenor by three years.

“The conferences with lenders are presently underway and the group is concentrating on mid-July to sew up a mortgage settlement with the consortium,” mentioned an individual conscious of the dialogue.

An e mail despatched to Adani Group remained unanswered until press time on Monday. Normal Chartered, Barclays and Deutsche Financial institution declined to remark.

Bid to keep away from focus danger
As issues stand, the present lenders are by and huge comfy to transform the phrases of the mortgage however have requested the group to carry extra lenders into the consortium to keep away from focus danger for the present lenders, mentioned the individual. “Bringing in new lenders may even increase the group’s credit score worthiness notion, particularly when the group faucets abroad bond markets someday later this 12 months,” mentioned a second individual conscious of the dialogue.The primary reimbursement tranche of the aforesaid loans is due in February 2024.ET had reported on March 28 that the Adani Group was in search of to renegotiate the phrases of excellent loans of round $4 billion taken in August final 12 months for the acquisition of its cement property – ACC and Ambuja Cements – from Switzerland-based Holcim group. ET had additionally reported that the group was trying to lengthen the tenor of its $3 billion bridge from the present 18 months to a interval of 5 years.

Concurrently, the group can also be in search of to transform one other $1 billion mezzanine mortgage tranche, which has a maturity of 24 months presently, to senior secured debt with a reimbursement schedule extending as much as 5 years. Though consumers of Indian company loans have been within the secondary mortgage market for a very long time, Taiwanese banks have elevated presence in main offers too. In April, Reliance Industries and Reliance Jio Infocomm raised $2 billion from round 55 lenders, of which greater than a dozen had been Taiwanese banks.