Adani Group Eyes $600 Million Offshore Loan to Refinance Debt

Adani Group is planning to secure a $600 million offshore loan, with a timeframe of 3-5 years, to refinance its existing debt
Gautam Adani
Gautam Adani

Adani Group is reportedly planning to raise nearly $600 million via offshore loans to refinance its current debt. The loan will be taken by Dhamra LNG Terminal Pvt, under Adani Total pvt ltd.

According to sources cited in a report by the Economic Times, the timeframe of the loan can range anywhere between 3-5 years. The pricing might likely be linked to the Secured Overnight Financing Rate.

Adani is expected to finalize the borrowing within the next two months. The conglomerate is in talks with potential lenders, such as Credit Agricole, DBS Bank, BNP Paribas, Mitsubishi UFJ Financial Group and Mizuho Bank.

The release of the Hindenburg report last year raised massive doubts and concerns among investors around the Adani group. However, the conglomerate has quite evidently gained back investor confidence. Earlier this year, the conglomerate's first-ever public bond sale post Hindenburg report, witnessed strong demand. 

The administration of Prime Minister Narendra Modi is working to improve the nation's capacity to import LNG in order to boost the proportion of natural gas in its energy mix from around 7 per cent to 15 per cent by 2030. The goal of the action is to lessen reliance on dirtier fossil fuels, such as coal and oil. Adani Total is a joint venture by Adani and TotalEnergies. 

Last week, 6 Adani Group firms received show-cause notices from the market watchdog for breaches in related party transactions and non-compliance with listing regulations.

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