How Adani raises $3.5 bn from 10 global banks to refinance debt for ACC, Ambuja acquisitions

Adani Cement, through Endeavour Trade and Investment Ltd, on Friday announced the "successful completion" of its refinancing program for acquisition debt taken for Ambuja and ACC, through a $3.5-billion financing package, raised from a clutch of international banks. "This showcases Adani's robust access to the global financial market and strong liquidity position. This achievement reflects our commitment to financial stability and growth. This facility will result in an overall cost saving of $300 million for the Adani Cement vertical," said Adani Group in a statement.The $3.5-billion facility marks the continued execution of the capital management plan outlined in September 2022 that will see step wise planned deleveraging of Adani Cement, said the conglomerate in a press release. The refinancing of the loan was concluded with 10 international banks including DBS, First Abu Dhabi Bank and Mizuho Bank for a tenor of 3 years, the group said in a statement, adding that it would save Adani Cement about $300 million in costs."The re-financing program of $3.5 billion has been concluded with a clutch of international banks with debt maturity of up to 3 years, testifies the strong support and access to capital, supplementing the solid capital prudency adopted at all portfolio companies," said Adani. Adani Group entered the cement sector last year with a $10.5 billion deal to buy Ambuja and ACC from Swiss giant Holcim. In August, it bought another local cement maker, Sanghi Industries, for $295 million.Shares in ACC, which were down over 3% before the announcement, trimmed losses to 2.5%, while shares in Ambuja pared some losses to trade around 1.1% lower.Adani Cement plans to increase its cement manufacturing capacity to 100 million tonnes per year by 2025 from 67 MTPA currently.The transaction is being financed by a consortium of 10 international banks including DBS Bank, First Abu Dhabi Bank, Mizuho Bank and MUFG Bank. Other banks in the consortium include Barclays Bank PLC, BNP Paribas, Deutsche Bank, ING Bank, Sumitomo Mitsui Banking Corporation and Standard Chartered. The promoters of the Adani Group had borrowed $5.25 billion to fund the $6.6 billion acquisition of the cement companies from Holcim in August last year.

Billionaire Gautam Adani's Adani Group on October 20 said it completed its refinancing programme for the acquisition debt taken for Ambuja Cements and ACC through a $3.5 billion financing package raised from 10 international banks.

"Adani Cement, through Endeavour Trade and Investment Ltd, has entered into definitive agreements. This facility will result in an overall cost saving of $300 million for the Adani Cement vertical," Adani Group said in a statement about one of the 10 biggest loans in Asia this year.At around 2pm, ACC and Ambuja Cements were trading 2.59 percent and 1.15 percent lower from the previous close. Adani Cement emerged as the second biggest cement player in India after the $6.6 billion acquisition of Ambuja and ACC, the largest in infrastructure and materials space, concluded in September 2022.Adani Cement plans to increase its cement manufacturing capacity to 100 million tonnes per year by 2025 from 67 MTPA currently.