Adani units raise $275 million offshore debt from global lenders

Two units of Adani Group raised a total of about $275 million through two foreign currency loans as the Indian conglomerate continues to ramp up its borrowing, according to people familiar with the matter.

Adani Airport Holdings Ltd. raised $150 million through a syndicated foreign currency loan from banks including Barclays Plc, DBS Bank Ltd., First Abu Dhabi Bank and Mitsubishi UFJ Financial Group, said the people, who asked not to be identified because the information is confidential. Separately, Adani Ports & Special Economic Zone Ltd. raised $125 million through a bilateral deal with Mitsubishi UFJ Financial Group, they said.

Investors have grown more confident lending the Adani Group as it seeks to raise funds across the spectrum of its businesses. The group signed new credit facilities of more than $10 billion over the past six months, roughly a third of their total debt, and their access to credit was cited by S&P Global Ratings in a recent decision to raise the outlook on three Adani units.

Representatives for DBS and First Abu Dhabi Bank declined to comment. Spokespeople for Adani Group and the other lenders did not immediately reply to requests for comment.

The airport loan priced about 300 basis points over the secured overnight financing rate, or SOFR, and the ports loan priced 215 basis points over SOFR, the people said. Both have a tenor of four years and proceeds will be used for purposes including dollar bond buybacks and capital spending, they said.

In June Mumbai International Airport Ltd., managed by Adani Airport Holdings Ltd., raised around $750 million from global investors led by Apollo Global Management Inc. to refinance existing debt for India’s second largest airport. The structure also allowed for up to $250 million in additional funding for capital expenditure and capacity expansion needs.