Two Adani Group companies have secured about $275 million through foreign currency loans as the conglomerate continues to expand its borrowing across businesses, as per a report by Bloomberg.
Airport arm secures $150 million
According to Bloomberg Adani Airport Holdings raised $150 million through a syndicated foreign currency loan. Banks including Barclays Plc, DBS Bank, First Abu Dhabi Bank and Mitsubishi UFJ Financial Group participated in the facility, according to Bloomberg.
The loan has been priced at around 300 basis points over the secured overnight financing rate (SOFR) and carries a four-year tenor. The proceeds will go towards capital spending and dollar bond buybacks.
Ports business borrows $125 million
Separately, Adani Ports & Special Economic Zone raised $125 million through a bilateral deal with Mitsubishi UFJ Financial Group, highlights Bloomberg. This facility was priced at about 215 basis points over SOFR and also has a four-year tenor.
Access to global credit improves
Lenders have shown growing confidence in extending funds to the Adani Group. Bloomberg reports that the conglomerate has signed new credit facilities worth over $10 billion in the past six months, roughly one-third of its total debt. S&P Global Ratings recently cited the group’s improved access to financing when it raised the outlook on three Adani entities.
Representatives of MUFG, Barclays, DBS and First Abu Dhabi Bank declined to comment to Bloomberg. Adani Group did not immediately respond to requests for comment by Bloomberg.
Mumbai airport raises $750 million in June
According to Bloomberg, In June also, Mumbai International Airport, managed by Adani Airport Holdings, raised about $750 million from global investors led by Apollo Global Management Inc. to refinance existing debt. The deal structure also allowed up to $250 million in additional funding for capital expenditure and expansion.