Adani lines up $2.5 bn in India’s biggest offshore loan
Adani Group, led by Asia’s wealthiest individual Gautam Adani, is set to secure $2.5 billion in offshore financing to refinance debt acquired for the purchase of two cement companies, according to sources familiar with the matter. This loan would mark India's largest offshore borrowing this year, surpassing Adaniconnex Pvt Ltd.'s $1.13 billion borrowing.
Endeavour Trade and Investment Ltd., a Mauritius-based special purpose vehicle owned by the Adani family, plans to raise $1.5 billion via a bridge loan with terms ranging from 18 to 24 months. The offshore loan may carry an interest rate around 150 basis points above the U.S. benchmark Secured Overnight Financing Rate (SOFR). Subsequently, the bridge loan will be refinanced through a rupee-denominated loan from Indian banks like State Bank of India and HDFC Bank.
Adani Infra (India) Ltd., another firm linked to the group, aims to raise about $1 billion through a five-year loan under the Reserve Bank of India’s external commercial borrowing window, potentially at an interest rate about 275 basis points higher than SOFR. If all proceeds are finalized, this $2.5 billion refinancing would rank as the largest offshore loan in India for the year, preceding Adaniconnex Pvt Ltd.'s $1.13 billion borrowing.
The group is engaging with multiple banks, including DBS Group Holdings Ltd., Mitsubishi UFJ Financial Group Inc., Sumitomo Mitsui Banking Corp., and Standard Chartered Plc, for these financing arrangements. The deal is expected to be finalized within the next two to three weeks, with closure anticipated before the end of October.
Adani Group's fundraising efforts follow a recent dismissal of US securities fraud charges against the conglomerate, paving the way for its expansion in India and abroad. Their fundraising plans come amid the group's acquisition of two Indian cement manufacturers, Ambuja Cements Ltd. and ACC Ltd., following a $3.5 billion funding package secured in 2023.
The Adani Group plans to raise an additional $1 billion through the final leg of the refinancing in 2027.
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