Adani Cement Raises $3.5 Bn from 10 Int'l Banks To Refinance Debt Taken for ACC-Ambuja Acquisitions

• Adani Cement Refinances USD 3.5 Billion From 10 International Banks, Terming Out The Acquisition Finance Facility By A Tenor Of 3 Years
• Adani Cement, through Endeavour Trade and Investment Ltd has entered into definitive agreements for a fresh facility of USD 3,500 million for refinancing of the debt taken for acquisition of Ambuja and ACC
• The re-financing program of USD 3,500 million 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.
• The transaction marks the strong underlying performance of business in Ambuja and ACC, with an improvement in EBITDA / Ton from INR 340/T in quarter ended Sep 22 (immediately after the acquisition) to 1,253/T in quarter ending Jun 23.

Adani Cement, through Endeavour Trade and Investment Ltd, is pleased to announce the successful completion of its refinancing program for acquisition debt taken for Ambuja and ACC, through a USD 3,500 million financing package, raised from a clutch of international banks. This showcases Adani's robust access to the global financial market and strong liquidity position. This achievement reflects our commitment to financial stability and growth. This facility will result in an overall cost saving of ~ USD 300 million for the Adani Cement vertical.

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 Sep 22 (immediately after the acquisition) to INR 1,253 / ton in the quarter ending Jun-23 which represents embedded deleveraging through elevated coverage positioning.

The transaction was financed by facilities aggregating to have USD 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.

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