Adani promoter, foreign banks to expand funds to repay debt

Adani Group has assured investors it will repay $1.3 billion in debt and part of the funds will come from project promoters and the rest from foreign banks, sources said.

Sources said Adani Group officials told investors during recent roadshows that they were in talks with three foreign banks to raise $750-800 million, which will be used to redeem bonds maturing in 2024.

Total Fees

According to the payment schedule of the bonds from seen business line, there are approximately $2 billion in bonds maturing in 2024, the largest of which is Adani Green Energy’s $750 million bond payment due in September, alongside its November bond payment of $225 million. Total bond fees with last payment in 2050 is $9.3 billion.

Loans from banks are likely to run for three years at an interest rate of 7-7.5 percent, at least 200 basis points higher than before the global rate hike began.

Adani officials are also said to have assured investors that a $500 million bridge loan taken out to acquire Holcim’s Indian operations would be repaid by the promoters.

According to a Reuters report, Adani officials also told creditors that the group had received a $3 billion loan from a sovereign wealth fund. This could not be independently verified by business line.

The ailing conglomerate needs funding and, led by Group Chief Financial Officer Jugeshinder Singh, senior officials are drumming up support from the global investor community.

road shows ahead

After meeting with investors at the three-day roadshow in Hong Kong and Singapore this week, Adani Group officials are scheduled to hold a roadshow in India this weekend, after which they intend to travel to the United States in the coming weeks, company officials said business line.

“These are open-ended roadshows to keep issuers informed of all developments and reassure them that everything is under control,” the official said.

The Group is also exploring the possibility of raising funds through a private placement of foreign currency convertible bonds or debentures. In fact, Adani Ports and SEZ are considering paying £2bn in fees on their bonds over the next year and in 2027.

To date, the Adani Group has repaid ₹9,250 crore in loans backed by the promoters’ pledged shares. In addition, it has repaid fees of ₹1,500 crore on commercial paper issued to SBI Mutual Fund and Aditya Birla Mutual Fund. An additional ₹1,000 crore due in March will also be paid soon.

After shedding around $130 billion in assets since Jan. 24, Adani Group shares have recouped some of those losses, gaining around 75,000 crore in market cap over the past two days.