SOVEREIGN DEBT RESTRUCTURING | MASTERCLASS

A deep dive masterclass on sovereign debt restructuring, to be conducted virtually by Asian high yield bond expert Florian Schmidt.

30 June 2022 (Thu), 5pm Singapore/HK time

Indian conglomerate Adani Group plans to raise $4.5bn through various overseas loan instruments from multiple foreign banks, as per sources. The proposed loan structures have various instruments such as mezzanine financing, a senior debt facility for 18 months, and bridge loans backed by its shares, to be repaid in cash. Its debt facilities could be refinanced by long-term bonds/loans later they said. The proceeds from funds will be utilized to the partly finance the acquisition of Swiss company Holcim’s stake in the ACC and Ambuja Cements. The funding size for the senior debt facility is likely to be at $3bn, while the mezzanine line is expected at $1bn with an interest rate of 7-8% (Secured overnight financing rate SOFR+450bps). The remaining $500mn via bridge loans maturity have a maturity of 1-3 years, which would be repaid in cash. The bridge loans are backed by shares of ACC and Ambuja Cements. In May 2022, Adani Group bought the cement companies for $10.5bn and reportedly considered to put $3bn as the promotor entity.  

Adani’s dollar bonds were trading lower with its 3.375% 2024s down over 0.5 points to 97.5 yielding 4.65%.

For the full story, click here

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