Adani Secures ₹2,400 Crore From Foreign Banks Amid Positive S&P Outlook On Group Companies

Business News: Two major companies of the Adani Group have together raised about US $ 275 million (about Rs 2,400 crore) from international banks. This money has been taken as a foreign currency loan. Adani Airport Holdings Limited has raised about $ 150 million. According to a report in the Economic Times, this loan has been taken from big banks like Barclays, DBS Bank, First Abu Dhabi Bank and Mitsubishi UFJ Financial Group.

This is a syndicated loan, meaning that several banks have jointly given this money to Adani units. According to ET's report, this loan is for 4 years and its interest rate is about 300 basis points higher than SOFR (Secured Overnight Financing Rate).

Port unit gets $125 million

On the other hand, Adani Ports and Special Economic Zone Limited has raised $125 million. This is a bilateral deal done with Mitsubishi UFJ Financial Group. The terms of this loan are also almost the same, its tenure is 4 years and the interest rate is 215 basis points higher than SOFR.

Where will this money be spent?

The main objective of this funding is dollar bond buyback i.e. repaying old loans and capital expenditure i.e. investing in infrastructure and expanding capacity. In the last six months, the Adani Group has signed new credit facilities worth about $10 billion. This is about a third of their total debt.

Due to this, S&P Global Ratings has recently given a positive outlook on the ratings of three companies of the Adani Group. They attributed this to Adani's access to better loans.

The company has already raised funds

In June, Mumbai International Airport Limited, operated by Adani Airports, raised about $750 million from Apollo Global Management and other investors. This also included an additional funding facility of $250 million, which can be used for expansion and upgradation of the airport.