Following its acquisition of Holcim’s business in India, the Adani Group is in discussions with more than a dozen foreign banks in a bid to raise US$4.5bn. According to The Economic Times, this marks one of the largest loan-based fundraisings in foreign currency by an Indian corporate entity. The proposed loan structures include mezzanine financing, stock-backed bridge loans to be repaid in cash, and a senior debt facility for 18 months. The mezzanine financing may raise US$1bn, while the senior debt facility is expected to raise up to US$3bn. The bridge loan is reportedly pegged at US$500m to be repaid in cash.
Among the banks involved in the discussions are BNP Paribas, Citi, JP Morgan, MUFG, Mizuho Bank, SMBC and a number of Middle East lenders. The Adani Group is currently exploring the capacity of each bank to lend with most expected to lend in the region of US$200-500m.
