Adani In Debt Refinancing Talks While Ghost Of Hindenburg Looms

Adani Group is reportedly looking to refinance a $3.8 billion (₹31,270 crore) loan facility it had procured last year to fund the takeover of Ambuja Cements.

What Happened? The Gautam Adani-led conglomerate is in talks with lenders, including Barclays, Standard Chartered, Deutsche Bank and Mitsubishi UFJ Financial Group, to refinance the loan, Bloomberg reported, citing sources.

The sources added that the Ahmedabad-based firm is considering converting the original facility into a loan with a longer term. The coal-to-airports conglomerate expects the existing lenders to participate and aims to complete the deal within four months.

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The debt financing efforts will be a major test for the company’s perceived creditworthiness after the firm was rocked by a scathing attack by US-based research firm Hindenburg Research, which in January accused the company of serious financial misconduct, though Adani Group has denied the claims.

However, things have changed since then, and the group's stocks have made somewhat of a comeback in the stock market after a Supreme Court-appointed expert committee told the apex court that it had founded no regulatory lapses on the part of the Securities and Exchange Board of India (SEBI).

It was recently also reported that Adani Group was gearing up to make a comeback in the global bond market by September this year, with several group companies aiming to raise up to $2 billion (₹16,522 crore).

The group had last week announced that it had repaid loans worth ₹22,000 crore ($2.65 billion).

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Posted In: NewsBondsFinancingMarketsAdaniAdani GroupBarclaysDeutsche BankGautam AdaniMitsubishi UFJ Financial GroupStandard Chartered