Banks had lent $4.5 billion to Adani to finance the deal. The mezzanine loan was due for maturity in September 2024.
Adani Cement Industries Ltd has reportedly pared a $1 billion mezzanine loan that was taken from global banks for the purchase of the Indian units of Holcim Ltd. In May last year, Adani had announced a deal to acquire Switzerland-based Holcim’s businesses in India for $10.5 billion
According to a report in Bloomberg that cited people in the know, the company prepaid $200 million last week, paring the loan. The report added that the prepayment will help Adani conglomerate seek an extension of the debt that was taken to fund the acquisition by three years.
Banks had lent $4.5 billion to Adani to finance the deal. The mezzanine loan was due for maturity in September 2024.
Gautam Adani had called the acquisition of Holcim’s cement assets – Ambuja Cements and ACC – historic. Gautam Adani said that the acquisition of Holcim is historic for four reasons – they became the second largest cement manufacturer in India, they have two of the most “iconic” brands in the country, the acquisition is India’s largest ever inbound M&A transaction in the infrastructure and materials space and closed in a record time of four months, and that it has forayed into the business when India is at the cusp of one of the greatest economic surges.