Adani Group Seeks $600 Million Bank Loan for Gas Division Expansion

Gautam Adani's conglomerate is in the process of securing an offshore loan of approximately $600 million to refinance existing debt, sources familiar with the matter have disclosed. The loan will be issued by Dhamra LNG Terminal Pvt., a subsidiary of Adani Total Pvt., with a term likely ranging between three and five years. The interest rates are expected to be tied to the secured overnight financing rate (SOFR).

Adani Group is negotiating with a range of banks, including Credit Agricole, DBS Bank Ltd., BNP Paribas, Mitsubishi UFJ Financial Group Inc., and Mizuho Bank Ltd. The borrowing deal is anticipated to be finalized within the next two months, according to sources who wished to remain anonymous due to the confidentiality of the negotiations.

This move represents a significant step for the Adani conglomerate, which has been regaining investor confidence following a critical report by U.S.-based short seller Hindenburg Research earlier last year. The Adani Group's resurgence was marked by a successful public bond offering in March, indicating strong market demand despite previous turbulence.

Dhamra LNG Terminal Pvt. is part of Adani Total, a joint venture between Adani Group and Total Energies. This initiative aligns with the Indian government's objective to expand the nation's import capacity for liquefied natural gas (LNG), aiming to increase natural gas's share in the energy mix from the current 7% to 15% by 2030. This shift is designed to reduce reliance on more polluting fossil fuels like coal and oil, reflecting a broader commitment to cleaner energy sources.

HBL