BENGALURU (Reuters) – A report on Tuesday said that the Adani group would renegotiate the terms of the $4 billion loan it took out last year to buy the cement companies ACC and Ambuja Cements. This caused shares of the Adani group companies to fall. wants to speak with you.
Adani Ports fell 9.2%, while Adani Enterprises, the group’s flagship company, fell nearly 8% to a four-week low.
Ambuja Cement and ACC both fell 4.2 percent to their lowest levels since February 2021.
Economic Times, citing sources, reported on Tuesday that the group led by billionaire Gautam Adani has begun negotiations with lenders to extend the term of its $3 billion bridge loan from the current 18 months to five years or longer. Is.
According to reports, the group wants to convert a second $1 billion tranche of mezzanine loans, which have a maturity date of 24 months, into senior secured debt with a maximum five-year repayment plan.
According to the newspaper, a banker said that the original plan was to refinance a large portion of the debt using long-term bonds. However, given the current market conditions, this appears to be difficult.
When contacted by Reuters for comment, the Adani Group, Standard Chartered, Barclays, and Deutsche Bank lenders did not immediately respond.
In May of last year, the group purchased the two cement companies from Holcim AG for $10.5 billion.
Avinash Gorakshkar stated, “If they want more time to repay the loan, it means they don’t have high cash flows.” There will be a two-year delay in any expansion plans that Adani Ports, Adani Enterprises, or even Adani Total have announced. Profitmart Securities’ head of research
Short-seller Hindenburg made allegations against the group in January, destroying the market value of seven listed Adani group companies by more than $120 billion.
Adani Group shares have fallen between 22% and 80% since the Hindenburg report.
(Bharat Rajeshwaran’s Bengaluru report; Sohini Goswami edited)