The Adani Group, led by Gautam Adani, is reportedly in discussions with several international banks to secure a loan of approximately $600 million. The loan is intended to manage existing debts and will be utilized by Dhamra LNG Terminal Pvt, a part of Adani Total Pvt. It is expected that the loan will have a duration of three to five years, with interest rates likely to be linked to the Secured Overnight Financing Rate (SOFR).
Among the banks involved in the discussions are Credit Agricole, DBS Bank Ltd., BNP Paribas, Mitsubishi UFJ Financial Group Inc, and Mizuho Bank Ltd. The borrowing process is anticipated to be finalized within the next two months.
This move comes as the Adani Group seeks to rebuild investor confidence following scrutiny from US short seller Hindenburg Research last year. Despite the challenges, the conglomerate successfully issued its first public bond since the crisis in March.
Adani Total, a joint venture between Adani and Total Energies, has recently reported positive financial results. Adani Total Gas, a subsidiary, recorded a significant increase in net profit for the fourth quarter, with a 71.6% rise compared to the same period in the previous fiscal year. Additionally, revenue from operations saw growth, along with a notable increase in earnings before interest, taxes, depreciation, and amortization (EBITDA).
The Indian government's focus on enhancing the country's LNG import capabilities aligns with Adani's efforts in the energy sector. India aims to increase the share of natural gas in its energy mix to 15% by 2030, as part of broader initiatives to reduce reliance on more polluting fossil fuels such as coal and oil.
