Adani Green Energy Ltd, controlled by Indian billionaire Gautam Adani, signed a deal to raise around $250 million from a group of global lenders, according to people familiar with the matter, in what would be the unit’s first foreign currency loan since an indictment by the US Department of Justice.
A group of four banks — DBS Bank Ltd., DZ Bank, Rabobank and Bank SinoPac Co Ltd — agreed to extend the credit, proceeds of which will be used to refinance an existing debt, said the people who asked not to be identified because the information is private.
The tenor of the loan is over five years and the interest rate would be around 8.20%, they said. Adani Group, Bank SinoPac and Rabobank did not immediately reply to Bloomberg’s emails seeking comments. DBS declined to comment. A DZ Bank spokesperson confirmed its participation in the syndication as one of the lenders.
The financing at the renewables unit comes as the conglomerate is aiming to cut its leverage over the next five years and has no plans to issue bonds in international capital markets until 2027. In March, Adani Green refinanced a construction-linked loan for 92.61 billion rupees ($1 billion) with India’s Power Finance Corporation Ltd.
In total, the group signed new credit facilities of more than $10 billion in the first half of the year across the ports unit, Adani Green Energy, Adani Enterprises Ltd. and Adani Energy Solutions Ltd., according to an August report by S&P Global Ratings.
“We do not see any significant increase in funding cost for the Adani group,” it said in the report, adding that the Adani family injected about $1.1 billion of equity into Adani Green Energy in July.
A group of four banks — DBS Bank Ltd., DZ Bank, Rabobank and Bank SinoPac Co Ltd — agreed to extend the credit, proceeds of which will be used to refinance an existing debt, said the people who asked not to be identified because the information is private.
The tenor of the loan is over five years and the interest rate would be around 8.20%, they said. Adani Group, Bank SinoPac and Rabobank did not immediately reply to Bloomberg’s emails seeking comments. DBS declined to comment. A DZ Bank spokesperson confirmed its participation in the syndication as one of the lenders.
The financing at the renewables unit comes as the conglomerate is aiming to cut its leverage over the next five years and has no plans to issue bonds in international capital markets until 2027. In March, Adani Green refinanced a construction-linked loan for 92.61 billion rupees ($1 billion) with India’s Power Finance Corporation Ltd.
In total, the group signed new credit facilities of more than $10 billion in the first half of the year across the ports unit, Adani Green Energy, Adani Enterprises Ltd. and Adani Energy Solutions Ltd., according to an August report by S&P Global Ratings.
“We do not see any significant increase in funding cost for the Adani group,” it said in the report, adding that the Adani family injected about $1.1 billion of equity into Adani Green Energy in July.
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