Adani is in talks with banks to obtain a $600 million loan for a gas unit

08 May 2024

According to reports, Gautam Adani's group is seeking an offshore loan of approximately $600 million to pay down existing debt. The loan will be procured by Dhamra LNG Terminal Private, a subsidiary of Adani Total Private, asking not to be named as the specifics are confidential, the report said. It is stated that the loan term may range from three to five years, with pricing likely linked to a secured overnight financing rate.

The port-to-power group is reportedly engaged in discussions with lenders such as Credit Agricole, DBS Bank Ltd., BNP Paribas, Mitsubishi UFJ Financial Group Inc., and Mizuho Bank Ltd. The borrowing process of the group is expected to be completed within the next two months.

After being targeted by US short-seller Hindenburg Research early last year, the group is regaining trust in its investors. The first public bond sale since the short-seller crisis saw strong demand in March.

Adani Total is a joint venture between Adani and TotalEnergies. The government of Prime Minister Narendra Modi is attempting to boost the country's capacity to import LNG in order to raise the share of natural gas in its energy mix from about 7% to 15% by 2030. The move is designed to help reduce dependence on dirty fossil fuels like coal and oil.