Adani Group needs more time to repay loans taken for ACC, Ambuja acquisitions: Report

The group also wants to convert its mezzanine loan of $1 billion to senior secured debt which will have a five-year repayment schedule

The Adani Group, which had taken Rs 32,858 crore ($4 billion) as loan from Switzerland's Holcim group in order to aquire cement companies ACC and Ambuja Cements, is now trying to renegotiate the terms of the loan, according to a report published by the Economic Times, which has spoken to multiple sources.

The conglomerate has reportedly entered negotiations in order to extend the 18-month time limit of its Rs 24,643 crore ($3 billion) payment by five more years.

Furthermore, the group also wants to convert its mezzanine loan of Rs 8,213 crore ($1 billion) to senior secured debt which will have a five-year repayment schedule. The mezzanine loan has a time period of 24 months to maturity.

Read | Adani shares tumble on report group seeking time to pay ACC, Ambuja debt

The publication reported that it had sent a query to the conglomerate on the same, and in response the latter said, "The query you shared in the email is incorrect."

Deutsche Bank, Standard Chartered Bank, and Barclays Banks also refused to comment on the issue.

The Adani Group, however, repaid loans amounting to Rs 12,321 crore ($1.5 billion) that it had taken to acquire Ambuja and ACC. In March, the conglomerate repaid $500 million more. This was a share of the bridge financing of $3.5 billion the group had earlier taken.

On February 4, reports surfaced that the conglomerate might shelve plans to raise funds worth around Rs 4,107 crore ($500 million), for which they were planning to use international bonds and other such options, This might include repayment of the outstanding amount from its internal sources.

Later, the group sold its stakes worth Rs 15,466 crores to the US-based GQC Partners. The publication has spoken to sources that have confirmed that proceeds from this were used to pay back a part of its debt accrued from the ACC-Ambuja acquisition.

A senior banker has informed the publication that despite the next repayment's maturity date being in February 2024, Adani Group is looking to finalize negotitations beforehand. Although lenders have agreed to the deal in principle, talks henceforth are likely to revolve around the loan's pricing.

Another source told ET that the original plan to refinance these loans using long-term bonds does not seem feasible right now given the current market conditions. Another source added that this is why lenders are willing to extend the terms, but they want the conglomerate to prepay "a part of the outstanding".