The Indian conglomerate is currently in discussions with Barclays Plc, Deutsche Bank AG, and Standard Chartered Plc to secure a loan ranging from $600 million to $750 million. This financing is intended to refinance the debt incurred during its acquisition.
Billionaire Gautam Adani’s conglomerate is making a comeback in the loan market with the possibility of raising over $1 billion. This development is a significant indicator of its gradual recovery in fundraising capabilities, coming six months after a US short seller triggered a severe decline in its stocks and bonds.
According to a Bloomberg report on Thursday, the Indian conglomerate is currently in discussions with Barclays Plc, Deutsche Bank AG, and Standard Chartered Plc.
The aim is to secure a loan ranging from $600 million to $750 million, which will be used to refinance the debt incurred during the purchase of Ambuja Cements Ltd. Additionally, Adani New Industries Ltd., a subsidiary of the Adani Group, has successfully raised $394 million through a loan from Barclays and Deutsche Bank for a solar module project.
In recent months, Adani Group has been witnessing a resurgence in its fundraising efforts, thanks to an improvement in its debt metrics.
These ongoing endeavors to secure loan deals are a testament to the conglomerate’s success in rebuilding investor confidence, particularly after being accused of widespread corporate malfeasance by short seller Hindenburg in January.
The company vehemently refuted the allegations, and as a result, its shares and bonds have recovered partially from the initial sell-off that had, at one stage, led to a loss of over $150 billion in the group’s market value.
In June, AdaniConneX Pvt successfully issued $213 million in senior debt to support the construction of data centers. Additionally, this month, Adani Enterprises Ltd. raised 12.5 billion rupees ($153 million) through a local-currency bond sale.
Furthermore, the conglomerate is currently engaged in discussions with other lenders with the aim of refinancing up to $3.8 billion of a loan facility that was initially taken for the acquisition of Ambuja.
The potential loan amount of up to $750 million would be a part of this broader refinancing plan. It’s important to note that the discussions have not yet reached a conclusion, and the exact amounts involved may still undergo adjustments.
