Adani Returns to Loan Market as Investor Confidence Improves

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Adani Returns to Loan Market as Investor Confidence Improves

Billionaire Gautam Adani has returned to the loan market after a gap of two years, as investor confidence in his group improves. The Adani Group raised $1 billion in debt from a consortium of banks led by State Bank of India.

The loan is being used to refinance the debt taken on to finance the purchase of Ambuja Cements Ltd., India’s third-largest cement maker. The acquisition was completed in January 2023.

The Adani Group’s return to the loan market is a sign that investor confidence in the company is improving. The group’s shares have risen by more than 50% in the past six months, and its bonds have also outperformed the broader market.

The improvement in investor confidence is likely due to a number of factors, including the group’s strong financial performance and its focus on renewable energy and infrastructure. The Adani Group is one of the largest renewable energy developers in the world, and it is also investing heavily in infrastructure projects, such as ports, airports, and power plants.

The group’s return to the loan market is a positive development for the Indian economy. The Adani Group is one of the largest private sector employers in India, and its investments in renewable energy and infrastructure will help to boost economic growth.

Gautam Adani, chairman of Adani Group, during a video speech on monitors in Mumbai, on Thursday,(Bloomberg)

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