The Adani conglomerate, overseen by billionaire Gautam Adani, is actively pursuing an offshore loan of approximately $600 million to refinance its current debt obligations. This loan is being sought by Dhamra LNG Terminal Pvt, a subsidiary of Adani Total Pvt, as reported by Bloomberg, with the debt's maturity expected to be between three to five years, and interest rates potentially based on the Secured Overnight Financing Rate.
In discussions with various lenders like Credit Agricole, DBS Bank Ltd., BNP Paribas, Mitsubishi UFJ Financial Group Inc, and Mizuho Bank Ltd, the Adani group is aiming to finalize the borrowing within the next two months, according to Bloomberg. The conglomerate, which had faced scrutiny from US short seller Hindenburg Research last year, has been working to rebuild investor confidence, illustrated by the successful public bond sale in March following the short-selling episode.
Adani Total, a joint venture between Adani and Total Energies, has witnessed a significant increase in profits, with Adani Total Gas reporting a 71.6 percent surge in net profit during the fourth quarter. The company's revenue from operations also saw growth, rising 4.7 percent year-over-year to Rs 1,167 crore, while the EBITDA for the March quarter saw a substantial increase of 47.6 percent to Rs 299 crore compared to the previous year, with the margin expanding to 24.7 percent.
With the Indian government aiming to enhance the country's LNG import capabilities to elevate the natural gas share in its energy portfolio to 15 percent by 2030 from the current 7 percent, initiatives are in place to reduce reliance on more polluting fossil fuels like coal and oil. This strategic move seeks to promote cleaner energy sources and decrease environmental impact in the energy sector.