Adani Group Fully Prepays Share-Backed Debt Of $2.15 Bn, $500-Mn Loan For Ambuja Deal

Adani Group has concluded full repayment of margin linked share backed financing well ahead of March 31 deadline

Gautam Adani-led Adani Group has completed full prepayment of margin linked share-backed financing aggregating to $2.15 billion in continuation of promoters’ commitment to repay the promoter leverage. According to a release by the conglomerate, the group has completed the full prepayment of margin well before committed timeline of March 31, 2023.

The promoters have also prepaid $500 million facility taken for Ambuja acquisition financing. This is in line with promoters’ commitment to increase equity contribution and promoters have now infused $2.6 billion out of total acquisition value of $6.6 billion for Ambuja and ACC, according to the statement by Adani Group on Monday.

The entire prepayment program of $2.65 billion has been completed within 6 weeks, which testifies the strong liquidity management and access to capital at sponsor level, supplementing the solid capital prudency adopted at all portfolio companies.

Last Tuesday, Adani Group said that it has prepaid share-backed financing of Rs 7,374 crore ($902 million) ahead of its latest maturity in April 2025. The company said that the move is part of its promoters' commitment to cut overall leverage backed by shares of the Group's listed companies.

Promoters of the group's flagship firm, Adani Enterprises will release 31 million shares, or a 4 per cent stake, while Adani Ports' promoters will release 155 million shares, or an 11.8 per cent stake, the group said in a statement.

Meanwhile, the group is seeking to sell shares of Ambuja Cement worth $450 million in a bid to reduce debt and restore investor confidence in the company, reported the Financial Times (FT) on Friday.

Citing three people with direct knowledge of the plan, the report said that Adani group on Thursday made a formal request to international lenders to sell 4 to 5 per cent of Ambuja Cement. The group owns 63 per cent of Ambuja Cement.

Adani Group last year acquired Holcim AG's cement firms Ambuja Cement and ACC Ltd in a $10.5 billion deal. It was Adani Group's largest-ever acquisition. The company became India's second-largest cement manufacturer after the purchase.