Foreign lenders in talks to finance part of Adani Group’s Ambuja debt.
Foreign lenders in talks to finance part of Adani Group's Ambuja debt.
Barclays, Deutsche Bank, and Standard Chartered Discuss Collective Loan to Adani Group
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Bengaluru, July 27 – In what can be seen as a significant financial move, Barclays, Deutsche Bank, and Standard Chartered are reportedly in talks to provide a collective loan of between $600 million and $750 million to India’s Adani Group[^1^]. This loan forms part of the discussions surrounding the refinancing of the debt that the conglomerate incurred during its acquisition of Ambuja Cements[^1^].
Last year, the Adani Group purchased ACC and Ambuja from Holcim AG in a deal worth $10.5 billion, making it India’s second-largest cement manufacturer[^1^]. The financing for this deal was secured through bridge loans, and now the group is seeking to refinance the debt through discussions with other lenders as well. The goal is to refinance up to $3.8 billion of the loan facility taken for the Ambuja acquisition[^1^].
Although the talks are still ongoing and the loan amounts are subject to change, this development reinforces Adani Group’s ongoing efforts to streamline its financing and secure long-term stability. Earlier this month, Reuters reported that the group aims to raise up to $4 billion in funding and is actively engaging with global investors to achieve this objective[^1^].
Barclays, Deutsche Bank, and Standard Chartered are prominent financial institutions with expertise and experience in lending to conglomerates and facilitating large-scale acquisitions. Their involvement in discussions with the Adani Group underscores the confidence the group has garnered within the financial sector and underlines their commitment to support significant infrastructure projects[^1^].
It is worth noting that Adani Group’s high levels of debt had raised concerns previously, particularly after U.S. short-seller Hindenburg published a report in January 2021 making several allegations against the conglomerate[^1^]. This report, which claimed improper use of tax havens and other financial irregularities, led to a significant decline in investor wealth across the group’s listed entities[^1^]. However, the Adani Group strongly refuted these allegations and has since gained renewed investor confidence, initiating measures to address concerns and repay debts[^1^].
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This potential loan from Barclays, Deutsche Bank, and Standard Chartered signifies a renewed trust and belief in the potential of Adani Group’s future endeavors. The group’s commitment to sustainable growth and its track record as a leading player in the Indian infrastructure sector have likely contributed to this positive sentiment among lenders[^1^].
It will be interesting to see the outcome of these ongoing discussions and the potential impact they may have on the Adani Group’s strategic plans and the overall investment landscape in India. As the group continues to pursue ambitious projects and secure financial support, it is positioning itself as a key player in the country’s economic growth and development.
References [^1^]: Reuters. Barclays, Deutsche Bank, Standard Chartered in talks to lend $600-$750 mln to Adani Group. July 27, 2022.
