The Adani Group, owned by billionaire Gautam Adani, is said to have received permission from a group of banks for a syndicated loan of roughly $3.5 billion to refinance debt incurred in the acquisition of Ambuja Cements Ltd.
Bloomberg News reported on Tuesday that Barclays Plc, Deutsche Bank AG, and Standard Chartered Plc have agreed to contribute approximately $250 million each toward a syndicated loan of around $3.5 billion to refinance Adani Group's debt. This follows months of negotiations between the Gautam Adani-backed company and lenders.
In August-September 2022, the Adani Group borrowed $5.25 billion from 14 global banks to finance the acquisition of the two cement companies by purchasing the interest held by Switzerland-based Holcim.
The Adani Group is likely to repay at least $300 million on the initial Ambuja facility, according to previous reports.
Bloomberg reported last month that DBS Group Holdings, First Abu Dhabi Bank, Mizuho Financial Group, Mitsubishi UFJ Financial Group, and Sumitomo Mitsui Banking Corp would each give approximately $400 million, while other banks would offer smaller amounts.
At 1.35 PM, Ambuja Cements shares were trading at Rs 436.20, up 1.43 percent.
Ambuja Cements stated in its most recent annual report that it formed three new wholly-owned subsidiaries on Friday. Two of them will be in the cement business, and one will be in the aircraft ownership and leasing sector.
Ambuja Concrete North Pvt. Ltd. and Ambuja Concrete West Pvt. Ltd. are two cement-related subsidiaries that have been formed.
LOTIS IFSC Pvt. Ltd., which owns and leases aircraft, has also been established with an approved capital of Rs 1.7 crore. The unit has been established at Gandhinagar's GIFT City.
Ambuja Concrete North will continue to manufacture and sell cement, RMX, and other linked products and by-products. This has also been adopted by the state of Gujarat.
According to the company's report, Ambuja Concrete West would operate in the same industry as Ambuja Concrete North.
Ambuja Cements purchased a 56.74 percent stake in Saurashtra-based Sanghi Industries in August for Rs 5,000 crore. Internal accruals will be used to fund the acquisition by Ambuja Cements. The transaction will be completed during the next 3-4 months.
In addition, the Adani Group company engaged into an inter-corporate deposit arrangement with Sanghi Industries, under which it will provide Sanghi with an unsecured inter-corporate deposit of Rs 300 crore in one or more tranches for general corporate purposes.
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