This marks the first foreign currency loan for the renewable energy arm of the Adani Group since an earlier indictment by the US Department of Justice. The development is seen as a significant financial move by the company, led by Indian billionaire Gautam Adani.
According to people familiar with the matter, the funds raised through this credit facility will be used to refinance existing debt. The loan syndicate includes four banks — DBS Bank Ltd., DZ Bank, Rabobank, and Bank SinoPac Co Ltd.
The tenor of the loan spans over five years, and the interest rate is expected to be around 8.20%, as per the sources cited in the report. While DZ Bank confirmed its participation, the other banks did not respond to Bloomberg’s emails seeking comment.
The financing move is part of the conglomerate’s broader strategy to reduce leverage over the next five years. Adani Green Energy, which has no immediate plans to issue bonds in international capital markets until 2027, had earlier refinanced a construction-linked loan worth Rs 92.61 billion (approximately $1 billion) in March with India’s Power Finance Corporation Ltd.
The loan deal comes amid a series of credit facilities signed by the Adani Group across its various business units. According to an August report by S&P Global Ratings, the group secured more than $10 billion in new credit facilities in the first half of the year.These included borrowings across the ports unit, Adani Green Energy, Adani Enterprises, and Adani Energy Solutions.Also read: The dreaded Rs 10,000-crore IPO curse may be breaking. Can LG and Tata Capital seal the turnaround?
Additionally, the report noted that the funding cost for the group has not significantly increased. It also highlighted that the Adani family injected approximately $1.1 billion of equity into Adani Green Energy in July.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
as a Reliable and Trusted News Source