India's Adani Group is in talks with lenders to refinance up to US$3.8bn of a loan facility taken for its acquisition of Ambuja Cements Ltd last year, according to Bloomberg News. The group is reportedly deciding whether to convert the original loan into debt with a longer maturity period.
Although the deal is yet to be finalised, Bloomberg News says the group is expected to conclude the process within four months with most of its existing lenders, including Barclays Plc, Deutsche Bank AG, Standard Chartered Plc and Mitsubishi UFJ Financial Group Inc, anticipated to participate.
Adani Group acquired ACC Ltd and Ambuja Cements in 2022 in a US$10.5bn deal that was financed by bridge loans. In March this year it was reported in the Indian press that the group was looking to renegotiate terms of outstanding loans worth US$4bn taken to buy the two cement producers. The Adani group's high debt levels were among the concerns that were flagged by US-based short seller Hindenburg in January this year. Hindenburg claimed the group improperly used tax havens, among other allegations that wiped over US$100bn in investor wealth off the Adani group's listed entities.
Last month, a court-appointed panel said India's markets watchdog had "drawn a blank" in investigations into suspected violations in overseas investments in the Adani group, reports Bloomberg.
