Adani Group (indicative picture).
– Photo: Social Media
Expansion
It is well known how much damage was done to the Adani group after the Hindenburg case came to the fore. But the biggest thing is that Adani Group is in talks with lenders to refinance its debt.
Adani Group is in talks with other lenders, including global banks, as it seeks to refinance the $3.8 billion loan it took last year for the acquisition of Ambuja Cements Ltd, a report said on Tuesday. The group is confident that it will complete the process in three to four months.
Adani group wants to convert debt into long term
According to media reports, Indian businessman Gautam Adani, who owns a conglomerate ranging from ports to power, wants to convert his principal debt into a longer maturity period. They have also started talking to banks about this. Most interesting is whether the global credit line company will be ready to do it again after the many Hindenburg allegations surfaced in January. However, the Adani Group denied these allegations. He answered many of Hindenburg’s questions. Most of the existing lenders are expected to participate in the process.
Which banks can be involved in this
Many foreign banks are expected to be involved in this process of refinancing Adani Group’s debt. The report said most of its existing lenders, including Barclays Plc, Deutsche Bank, Standard Chartered Plc and Mitsubishi UFJ Financial Group Inc, are in talks to participate in the refinance deal. While some lenders have gone to their respective international credit teams for approval of the arrangement.
On the other hand, Barclays, Deutsche, MUFG and Standard Chartered declined to comment on the matter. The report cautions the deal is yet to be finalized and has not moved forward. If the deal goes through, it would be the group’s first major effort since the Hindenburg revelations in January.
Last year, Adani Group acquired ACC Ltd and Ambuja Cements Ltd in a deal worth $10.5 billion, which was financed by multiple debt. In March, there were media reports that Adani Cement was looking to renegotiate the terms of the outstanding loan of nearly $4 billion taken last year to buy the firms.
The committee formed by the Supreme Court is investigating
The allegations against the Adani Group are being investigated by a panel of experts appointed by the Supreme Court of India. According to media reports, a report last month said that there was no regulatory failure or wrongdoing behind the wild jump in Adani’s shares. Still, another decision could come from India’s securities watchdog in August after it completes its probe into the short seller’s allegations against the Adani group.