Last year, the Adani Group borrowed $6.6 billion to acquire ACC Ltd and Ambuja Cements Ltd, from the group’s promoters. In order to repay, the debts of $6.6 billion to its group’s promoters, the Adani Group reportedly made a $3.5 billion debt refinance deal from a consortium including 10 international lenders. This news broke out on October 20, 2023, Friday, since then market personnel have been keenly scrounging the weblogs to learn more about this refinancing deal. In case, you are scrambling to the web regarding the Adani Group’s refinancing deal, the following sections are waiting for you. Stick with this page and go through it till the end.
The refinancing deal’s terms are said to be more favorable than the earlier acquisition loan for Ambuja Cement and ACC Ltd. Reportedly, the refinancing deal of $3.5 billion has a maturity of up to 3 years, including at least 10 international lenders. Do you know who will avail the refinancing amount? People familiar with the development claimed that Adani Group’s special purpose vehicle “Endeavor Trade and Investment Ltd” will avail $3.5 billion as part of the refinancing deal to repay the debts of $6.6 billion to the group’s promoters. Shift to the next section and read more details.
The Adani Group said the refinance term may save around $300 million against the cost involved in the amount borrowed from the group’s promoters for the acquisition of Ambuja Cement and ACC Ltd last year. however, our sources earlier reported that Adani Group secured a $3.7 billion refinancing deal with a consortium of banks including at least 10 investors. It is the largest deal ever happening in the cement industry. Among the 10 international banks involved in this refinancing deal are First Abu Dhabi Bank, DBS Bank, MUFG Bank, and Mizuho Bank, as mandated lead arrangers, book runners, and underwriters. Additionally, BNP Paribas, Barclays Bank Plc, Deutsche Bank AG, Sumitomo Mitsui Banking Corp., ING Bank, and Standard Chartered Bank have come in as joint lenders.
Last year in August, the Adani group bought Ambuja Cements and ACC Ltd for more than $6.5 billion. Reportedly, $2 billion of $6.6 billion was financed through equity and the rest via debt. To acquire two cement companies, the Adani group raised a $4.5 billion debt obligation out of the bridge loan from a consortium including 14 banks. Currently, ACC Ltd and Ambuja Cements have a combined installed production capacity of 67 MT PA, which will be increased to 100 MT PA by 2025 after the acquisition of Sanghi Cement.