Adani Cement on Friday said it has refinanced $3.5 billion loan it had taken for the acquisition of ACC and Ambuja Cement. As many as 10 international banks refinanced the facility, the firm said in a statement. “The re-financing programme of $3.5 billion has been concluded with a clutch of international banks with debt maturity of up to 3 years, testifies the strong support and access to capital, supplementing the solid capital prudency adopted at all portfolio companies,” it said.
According to the company release, the transaction was financed by facilities aggregating to have $3,500 million from 10 international banks. DBS Bank, First Abu Dhabi Bank, Mizuho Bank and MUFG Bank acted as Mandated Lead Arranger and Bookrunners and Underwriter to the transaction. In addition, 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 Borrower’s counsel for the financing with Allen & Overy LLP, Talwar Thakore and Associates acting as legal counsels to the lenders.
Adani Cement is the second-largest maker in India, with the $6.6 billion acquisition of Ambuja and ACC completed by the Adani Cement, the largest acquisition in infrastructure and materials space concluded in September 22. The $3.5 billion facility marks the continued execution of the capital management plan outlined in September 2022 that will see step wise planned deleveraging of Adani Cement. With cement vertical net debt to EBITDA now under 2x.
Currently, Ambuja Cements and ACC have a combined installed production capacity of 67 MTPA to conclusively mover to 100 MTPA by 2025 with the announced acquisition of Sanghi Cement. ACC & Ambuja are among the strongest brands in India with immense depth of manufacturing and supply chain infrastructure – these along with benefit from synergies with the integrated Adani infrastructure platform, especially in the areas of raw material, renewable power and logistics, where Adani Portfolio companies have vast experience and deep expertise has resulted in to improvement in the EBITDA / Ton from INR 340 / ton in quarter ending September 22 (immediately after the acquisition) to Rs 1,253 / ton in the quarter ending Jun-23 which represents embedded deleveraging through elevated coverage positioning.