Adani's $3.5 Billion Ambuja Loan Advances as Planned

A consortium of banks engaged in discussions to provide approximately $250 million each for a syndicated loan of around $3.5 billion, aimed at refinancing debt incurred by the Adani Group for the acquisition of Ambuja Cements Ltd., has received internal approval for the transaction, according to sources familiar with the matter.

The three banks involved in this endeavor are Barclays Plc, Deutsche Bank AG, and Standard Chartered Plc, as per the individuals who preferred to remain anonymous due to the confidential nature of the discussion.

These banks are part of a larger consortium that has been in negotiations with billionaire Gautam Adani's conglomerate for the syndicated loan. Some institutions have been in talks to lend as much as $400 million each, potentially making it one of the most significant loan deals in Asia for the year, as previously reported by Bloomberg.

This potential transaction underscores the Adani Group's efforts to move past the allegations of wrongdoing made by US shortseller Hindenburg Research earlier this year. Although Adani officials consistently denied these allegations, they led to a decline in the stocks and bonds of group companies. Negotiations with international banks for debt refinancing had stalled as certain banks expressed reservations, as reported by Bloomberg in February.

Spokespeople for Barclays, Deutsche Bank, and Standard Chartered all declined to provide comments when approached by Bloomberg on Tuesday. A representative for the Adani Group did not immediately respond to requests for comment.

In 2022, Adani acquired the India assets of Switzerland's Holcim Ltd. This move marked the conglomerate's expansion beyond its core businesses, which include operating ports, power plants, and coal mines, into sectors such as data centers, airports, digital services, retail, and media.