Business Maverick: Adani to prepay $500m loan as banks baulk at refinancing

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The Adani Group plans to prepay a $500-million bridge loan due next month after some banks baulked at refinancing the debt following a short seller report that sent the group’s assets tumbling.

Barclays, Standard Chartered and Deutsche Bank AG are among banks that lent Adani $4.5-billion to finance the purchase of Holcim cement assets last year. A portion of that loan is due on 9 March.

The lenders were in talks to refinance the loan up to a week before the critical report from Hindenburg Research was published, according to people familiar with the matter. Those negotiations stalled after the report alleging fraud led to a massive selloff, chilling the banks’ willingness to refinance, the people said, asking not to be identified discussing a private matter.

The development is the first concrete sign that global banks are becoming more wary of financing Adani’s empire and coincides with

 

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