Adani Cement refinances $3.5 billion loan from international banks, ET RealEstate
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NEW DELHI: Adani Cement, a subsidiary of Adani Group, has refinanced its acquisition debt taken for Ambuja Cements and ACC, through definitive agreements for a fresh facility of USD 3,500 million raised from international banks.
This facility will result in an overall cost saving of about USD 300 million for the Adani Cement vertical.
“The USD 3.5 billion facility marks the continued execution of the capital management plan outlined in Sep 2022 that will see step wise planned deleveraging of Adani Cement. With cement vertical Net Debt to EBITDA now under 2x,” the company said.
The transaction was financed by facilities aggregating to have USD 3,500 million from 10 international banks. DBS Bank, First Abu Dhabi Bank, Mizuho Bank and MUFG Bank acted as Mandated Lead Arranger and Bookrunners and Underwriter to the transaction. In addition, Barclays Bank PLC, BNP Paribas, Deutsche Bank AG, ING Bank, Sumitomo Mitsui Banking Corporation and Standard Chartered Bank acted as Mandated Lead Arrangers and Bookrunners for the transaction.
Cyril Amarchand Mangaldas, Latham and Watkins acted as Borrower’s counsel for the financing with Allen & Overy LLP, Talwar Thakore and Associates acting as legal counsels to the lenders.
In Septemeber 2022, Adani cement completed acquisition of Ambuja and ACC for USD 6.6 billion. Currently, both the companies have a combined installed production capacity of 67 MTPA to conclusively move to 100 MTPA by 2025 with the announced acquisition of Sanghi Cement.