Overseas lenders interest
Confidence in Adani grows
India’s Adani Group is in discussions with a group of lenders including First Abu Dhabi (FAB) bank to secure a loan of as much as $750 million for its airport division.
The other lenders are Barclays and Standard Chartered Bank, Bloomberg reported this week, without identifying its sources.
The funds raised will be used to support capital expenditure and to refinance dollar-denominated debt maturing in September, Bloomberg wrote. The goal is to complete the deal next month.
Adani Airport Holdings operates seven major airports in India and is on the verge of starting up a new $2 billion international hub on the outskirts of Mumbai.
While the specific terms of the loan have not been finalised and are subject to change, it is expected to have a tenure of less than five years.
If successful, the loan would represent Adani’s second major fundraising effort from banks outside of India in less than a month
This development indicates that international banks are becoming more comfortable with lending to Adani, despite an ongoing bribery probe by the US Department of Justice involving its billionaire-founder Gautam Adani, Bloomberg reported.
Earlier this month Adani raised approximately $750 million through an offshore private placement bond to finance the acquisition of a construction firm.
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