Adani group to raise as much as $4.5 billion via a mix of offshore loans

The Adani Group is in talks with over a dozen foreign banks to raise up to $4.5 billion via a variety of overseas loan instruments. This will be among the largest loan-based foreign currency fundraising efforts by an Indian corporate entity. Tenured instruments, such as bonds with prespecified coupons, are usually sold abroad to raise substantial sums of money. The proposed loan structures include mezzanine financing, stock-backed bridge loans repayable in cash, and an 18-month senior debt facility. The last of these structured instruments could be refinanced with a long-term bond or loan in the future. The latest round of fundraising will be used to partially finance the acquisition of Holcim’s stakes in Ambuja Cements and ACC, two Mumbai-listed cement companies. Bar­c­lays, Deutsche Bank and Standard Chartered Bank had earlier underwritten the whole funding lines.