Friday, October 20, 2023

Adani Refinances $3.5 Billion in One of Asia’s Biggest Loans


Saikat Das
Fri, October 20, 2023



(Bloomberg) -- Billionaire Gautam Adani-controlled Adani Group has completed a $3.5 billion funding package to refinance debt used to purchase Ambuja Cements Ltd., in the latest sign of confidence among creditors in the conglomerate.


The deal, which is among the top 10 biggest loans in Asia this year, was concluded with a group international banks with debt maturity of up to 3 years, the company said in a statement Friday. The borrowing is among the top 10 biggest loans in Asia this year.

“Adani Cement, through Endeavour Trade and Investment Ltd., has entered into definitive agreements” for the facility, it said.

The financing comes after months of negotiations with banks and follows allegations of fraud by US shortseller Hindenburg Research that caused the company’s bonds and shares to plunge earlier in the year. Adani has strongly denied those claims.


While the statement didn’t give any pricing details, people familiar with the matter had earlier said that the loan would likely be priced at 450-500 basis points all-in-costs over the benchmark secured overnight finance rate. The deal would comprise three tenors: 6-month, 18-month and 3-year, they also said, as Bloomberg News had previously reported.

The group’s flagship firm already raised 12.5 billion rupees ($151 million) by issuing local-currency bonds in July, as the company sought to put the Hindenburg claims behind it.

Bloomberg Businessweek


Adani Group 'fleecing' People of Rs 12,000 Crore: Rahul Gandhi





Congress leader cites a Financial Times report accusing the group of over-invoicing in coal imports and fleecing people of Rs 12,000 crore in electricity rates.
Congress leader Rahul Gandhi addresses a press conference at the AICC Headquarters in New Delhi.

Congress leader Rahul Gandhi addresses a press conference at the AICC Headquarters in New Delhi. Image Courtesy: PTI

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Adani Group 'fleecing' People of Rs 12,000 Crore: Rahul Gandhi

PTI

New Delhi: Congress leader Rahul Gandhi on Wednesday cited a media report to accuse the Adani Group of over-invoicing in coal imports and fleecing people to the tune of Rs 12,000 crore in electricity rates.

Addressing a press conference at the AICC headquarters here, Gandhi attacked Prime Minister Narendra Modi, asking him to come clean on the Adani issue by initiating a probe into the matter and defend his credibility.

"Why is the prime minister silent on the issue? I am only helping the prime minister and asking him to come clean by starting an investigation and defend his credibility," Gandhi said.

The former Congress chief displayed a recent Financial Times report at the press conference which claimed that the Adani Group appears to have imported billions of dollars of coal at prices well above market value.

Gandhi claimed that as per the report Adani over-invoiced coal imports and took out Rs 12,000 crore from "people's pockets".

Adani bought coal in Indonesia and when it reached India, its price doubled, Gandhi alleged, citing the report.

Gandhi claimed this over-invoicing of coal was having an impact on electricity rates in the country and leading to consumers paying higher electricity bills.

He also said that this story would have brought down any government in the world but no action was being taken in India.

"Adani has full protection of the government, everyone knows which power is behind him," he said.

The Opposition party has also been questioning the financial dealings of billionaire Gautam Adani's Group after US research firm Hindenburg alleged "irregularities" and charged it with stock price manipulation.

The Adani Group has denied all the allegations made in the Hindenburg report and claimed there had been no wrongdoing on its part. There was no immediate response from the group on the fresh allegations.


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