Adani Group negotiates $600 million loan for gas subsidiary
Gautam Adani's multinational corporation, Adani Group, is reportedly in talks to secure an offshore loan of approximately $600 million. The purpose of this loan is to refinance existing debt, reported Moneycontrol, ciiting sources familiar with the matter. The debt will be raised by Dhamra LNG Terminal Pvt., a subsidiary of Adani Total Pvt., with the repayment period potentially spanning three to five years.
Loan discussions with multiple lenders underway
The Adani Group is currently discussing the proposed transaction with several lenders, including Credit Agricole, DBS Bank Ltd., BNP Paribas, Mitsubishi UFJ Financial Group Inc., and Mizuho Bank Ltd. Insiders told Moneycontrol that Adani is expected to finalize the borrowing process within the next two months. The pricing of this loan is anticipated to be linked to the Secured Overnight Financing Rate.
Adani Group's recovery and future plans
The loan initiative comes as the Adani Group is rebuilding investor trust following a challenging period last year when it was targeted by US short seller Hindenburg Research. In March, the group saw strong demand for its first public bond sale since this crisis. Adani Total aligns with Prime Minister Narendra Modi's strategy to boost India's LNG import capacity and increase LNG's share in energy mix to 15% by 2030 from about 7% now.
