Adani Shares To Remain In Limelight On Wednesday After A Report Says This...

Adani group shares will remain in focus on Wednesday after a Moneycontrol Report cited sources saying that the Indian conglomerate has raised $200 million from Qatar National Bank as part of debt refinancing of a $3.5 billion loan taken for the acquisition of ACC Ltd and Ambuja Cements Ltd last year.

The group raised $200 million from Qatar National Bank in a loan agreement signed last week, sources said on condition of anonymity according to the report.

While the group had successfully refinanced the original loan in October, raising $3.2 billion from a consortium of 18 international lenders, the Adani family had infused $300 million through equity.

"The terms of refinancing allowed the promoters to replace the equity component with debt at a future date," said one of the persons aware of the negotiations.

The refinancing is expected to help Gautam led group to expand cement capacity, now the country's second biggest, and fund an asset-building plan to raise installed production to 140 million tonnes per annum (mtpa) by 2027. In October, the group stated that the current Adani Group capacity is about 110 mtpa, including about 40 mtpa under implementation.

Last year's acquisition of ACC and Ambuja Cements was funded via a total acquisition financing of $6.5 billion. This amount of $6.5 billion comprised $1.25 billion in equity and $5.25 billion in debt. The debt component which comprised a $750 million facility was secured from various lenders, including JPMorgan, Barclays, Deutsche Bank, and SMBC.

Besides, there was a structurally subordinated debt of $1 billion obtained for a 24-month period from banks such as Standard Chartered, Deutsche Bank, Barclays, DBS, SMBC, and others.

Notably, $500 million of this facility had a six-month term, while the rest $3 billion constituted an 18-month facility. The repayment process involved the complete settlement of the $750 million bridge loan facility in the month of February. Subsequently, $500 million of the $3.5 billion senior debt was repaid in March.

A further $200 million of the subordinated $1 billion facility was also repaid in April. Consequently, the Adani Group was left with $3 billion of senior debt and $800 million of subordinated structured debt, totaling $3.8 billion.

Today, most Adani group stocks traded mixed. The share price of Adani Enterprises fell 1.28%, Adani Green Energy closed 0.37% higher, Adani Total Gas closed 0.48% lower, Adani Energy Solutions Ltd was up 3% while the share price of Ambuja Cement Ltd was down 0.60%.

About Ambuja Cements Limited

Ambuja Cements Limited, part of the Adani Group, is among India's leading cement companies. Ambuja, with its subsidiary ACC Ltd. & Sanghi Industries Ltd has a capacity of 74.6 million tonnes with eighteen integrated cement manufacturing plants and fourteen cement grinding units across the country