Adani Group on road to recovery with $3.5 billion refinancing deal in the making

Adani Group, backed by billionaire Gautam Adani, is in discussions for a $3.5 billion loan, which could be one of the largest in Asia this year.

Adani Group, backed by billionaire Gautam Adani, is in discussions for a $3.5 billion loan, which could be one of the largest in Asia this year. The group has been negotiating with lenders for several months to refinance up to $3.8 billion of debt. This debt was incurred from the acquisition of Ambuja Cements Ltd.

The refinancing process involves banks, which are divided into three categories. These banks are expected to refinance a total of $3.5 billion, with Adani repaying at least $300 million on the original Ambuja facility.

Several banks including DBS Group Holdings Ltd., First Abu Dhabi Bank PJSC, Mizuho Financial Group Inc, Mitsubishi UFJ Financial Group, Inc. and Sumitomo Mitsui Banking Corp. are each expected to lend about $400 million. Other banks will lend smaller amounts.

This development comes as Adani Group recovers from allegations of misconduct by US shortseller Hindenburg Research, which temporarily wiped off more than $150 billion from the company’s stocks. Adani officials have consistently denied these allegations.

The deal is not yet finalized and terms may still change. If it goes through, it would be the fourth-largest loan in Asia outside Japan this year.

Adani Group declined to comment on this matter, stating that they do not comment on routine business matters and speculation. Several banks involved in the deal also declined to comment or did not respond.

As part of its recovery strategy, the group’s flagship firm raised 12.5 billion rupees by issuing local-currency bonds in July. Additionally, veteran investor Rajiv Jain’s GQG Partners LLC has purchased a stake in group firms.