Adani Group Plans $2.5 Billion Loan To Refinance Cement Acquisition Debt
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Adani Group is looking to raise $2.5 billion. Global and domestic lenders are being approached to refinance debt connected to its acquisition of Ambuja Cements and ACC. The proposed financing includes a $1.5 billion bridge loan and a separate $1 billion five-year facility.
Adani Group is planning to raise $2.5 billion from lenders to refinance debt used to acquire Ambuja Cements Ltd. and ACC Ltd., according to people familiar with the matter.
The refinancing is being structured through two separate borrowing facilities. One will be arranged through Endeavour Trade and Investment Ltd., a Mauritius-based special purpose vehicle owned by the Adani family, while the other will come through Adani Infra (India) Ltd.
The structure is designed to tap different pools of liquidity across offshore and domestic markets while keeping borrowing costs under control as credit conditions change.
Adani Group's $2.5 Billion Refinancing Plan
Endeavour Trade and Investment Limited | $1.5 billion |
Bridge loan tenor | 18-24 months |
Indicative pricing | ~150 basis points over the Secured Overnight Financing Rate (SOFR) |
Adani Infra (India) Limited | ~$1 billion |
Loan tenor | 5 years |
Indicative pricing | ~275 basis points over SOFR |
Total planned borrowing | $2.5 billion |
The bridge facility is likely to be refinanced later with a rupee loan from domestic lenders. State Bank of India and HDFC Bank are among the banks involved. The longer-term loan will be raised under the Reserve Bank of India’s (RBI’s) external commercial borrowing framework.
There may be another cost advantage for the group. The RBI’s concessional foreign-exchange swap facility could reduce the cost of protecting overseas borrowing against currency swings. That could make offshore funding more appealing.
Global Banks In Talks With Adani Group
Adani Group is in active discussions with several international lenders. The banks involved include:
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DBS Group Holdings Limited
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Mitsubishi UFJ Financial Group, Inc.
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Sumitomo Mitsui Banking Corporation
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Standard Chartered PLC
The lenders are expected to sign the transaction within the next two to three weeks. The financing is likely to close before the end of October.
If completed, the borrowing could become India’s largest offshore loan this year, overtaking AdaniConnex Private Limited's $1.13 billion loan, currently the largest offshore borrowing by an Indian entity this year.
Refinancing Follows Cement Acquisition
The planned transaction is the second major refinancing exercise tied to Adani Group's acquisition of Ambuja Cements Limited and ACC Limited.
The group secured a $3.5 billion funding package in 2023 for the cement acquisition. It is also planning a further refinancing leg in 2027, according to people familiar with the matter.
The staggered approach gives the group greater flexibility in managing maturities and choosing between offshore and domestic sources of capital.
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This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Vishwa has spent 10+ years across fintech and FMCG doing what most people miss, connecting the dots, catching trends before they trend, and finding the angle nobody else thought to ask about.
At Kotak Neo, she drives content strategy for neoshorts, Kotak News Desk, and Investing Guide, turning market noise into something worth reading.
When she's not decoding markets, she trades charts for canvases, chasing art, painting, and architecture across cities she's yet to explore.
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