Billionaire Gautam Adani’s conglomerate is reportedly in the process of securing an offshore loan worth approximately $600 million to refinance existing debt, according to sources familiar with the situation.
The loan is intended to be raised by Dhamra LNG Terminal Pvt., a subsidiary of Adani Total Pvt., with the duration expected to range between three to five years. The pricing structure is likely to be linked to the Secured Overnight Financing Rate, the sources added.
Discussions regarding the proposed transaction are underway between the port-to-power conglomerate and various lenders, including Credit Agricole, DBS Bank Ltd., BNP Paribas, Mitsubishi UFJ Financial Group Inc., and Mizuho Bank Ltd. It is anticipated that Adani will finalize the borrowing within the next two months.
Despite facing scrutiny last year from US short seller Hindenburg Research, the conglomerate has been gradually restoring investor confidence. In March, it experienced strong demand for its inaugural public bond sale since the short seller controversy.
Adani Total, a joint venture between Adani and TotalEnergies, aligns with Prime Minister Narendra Modi’s government’s efforts to bolster India’s LNG import capacity, aiming to increase the share of natural gas in the country’s energy mix to 15 percent by 2030, up from the current 7 percent. This strategic move seeks to reduce reliance on environmentally harmful fossil fuels like coal and oil.
