Gautam Adani-led Adani Group has entered into a $3.7 billion refinance agreement with a consortium of at least 20 foreign banks, the largest such deal in the cement industry.
Two people with direct knowledge of the matter confirmed this, adding the move will not only help Adani Group repay the entire loan taken for acquiring Ambuja Cements Ltd and ACC Ltd, but may also reduce the group's cost of capital. The consortium includes Deutsche Bank AG, Standard Chartered Bank plc, Barclays plc, Citibank NA, MUFG Bank Ltd, Sumitomo Mitsui Banking Corp and other lenders, the two people said.
The refinance deal may enhance the group's credit rating and strengthen its ability to acquire other cement firms, in sync with the group's ambition to beat Ultratech Cement Ltd to become the country's largest cement maker doubling its capacity to 140 mtpa by 2027.
This is a key part of the revived capex plan at Adani Group which, earlier this year, suffered a $150 billion wealth wipe-out at one point following a negative report by US-based short-seller Hindenburg Research on 24 January.
On 13 September, Bloomberg reported that the Adani Group is in talks with banks to refinance debt taken on to fund its purchase of Ambuja Cements Ltd, with lenders divided into three categories in what could be one of Asia's largest syndicated loan deals of the year.
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