– Adani Cement refinances US$3.5 billion from 10 international banks and extends acquisition financing facility term by 3 years
– The strength of the underlying business is reflected in the unwavering confidence of global financial institutions
Publisher’s Synopsis
AHMEDABAD, India, Oct. 25, 2023 /PRNewswire/ — Adani Cement, through Endeavor Trade and Investment Ltd, is pleased to announce the successful completion of its acquisition debt refinancing program acquired for Ambuja and ACC, through a financing package of 3.5 billion US dollars, obtained from a group of international banks. This demonstrates Adani’s strong access to the global financial market and its strong liquidity position. This achievement reflects our commitment to financial stability and growth. This credit facility will result in overall cost savings of around US$300 million for Adani Cement’s vertical.
Adani Cement is India’s second largest cement maker, with the US$6.6 billion acquisition of Ambuja and ACC (two of India’s most storied brands), the largest acquisition in the infrastructure and transportation space. materials completed on September 22. The US$3.5 billion credit facility marks the continuation of the execution of the capital management plan outlined in September 2022, which will see a progressive deleveraging of Adani Cement. With cement vertical net debt to EBITDA now below 2x.
Currently, Ambuja Cements and ACC have a combined installed production capacity of 67 MTPA, which will increase to 100 MTPA in 2025 with the announced acquisition of Sanghi Cement. ACC and Ambuja are among India’s strongest brands with immense depth of manufacturing and supply chain infrastructure, which along with the benefit of synergies with Adani’s integrated infrastructure platform, especially in the subject areas raw materials, renewable energy and logistics, where Adani’s portfolio companies have extensive experience and deep knowledge, has led to an improvement in EBITDA/tonne of Rs 340/tonne in the quarter ended September 22 (immediately after acquisition) at Rs 1,253/tonne in the quarter ended June 23, representing built-in deleveraging through high hedging positioning.
The operation has been financed through lines of credit from 10 international banks for a total of 3.5 billion US dollars. DBS Bank, First Abu Dhabi Bank, Mizuho Bank and MUFG Bank acted as Mandated Lead Arranger and Bookrunners and Underwriter for the transaction. Additionally, 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 counsel to the Borrower for the financing, while Allen
About Adani Group
Headquartered in Ahmedabad, India, the Adani Group is India’s largest and fastest growing diversified portfolio of companies, with interests in Logistics (seaports, airports, logistics, shipping and rail), Resources, Generation and Distribution Energy, Renewable Energies, Gas and Infrastructure, Agriculture (raw materials, edible oil, food products, cold storage and grain silos), Real Estate, Public Transport Infrastructure, Consumer Finance and Defense, among other sectors. Adani owes its success and leadership position to its core philosophy of “Nation Building” and “Growth with Goodness”, a guiding principle for sustainable growth. The group is committed to protecting the environment and improving communities through its CSR programs based on the principles of sustainability, diversity and shared values. More information on the website www.adani.com.
For media inquiries contact:Roy Paul, roy.paul@adani.com
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