Adani Group plans up to $1.45 billion in equity funding for its €2.56 billion Evos acquisition, with global lenders expected to finance the balance.
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India’s Adani Group is preparing a substantial equity investment to support its proposed €2.56 billion ($2.9 billion) takeover of Dutch liquid storage company Evos B.V., with plans to cover approximately half of the acquisition cost through its own capital and arrange the balance through syndicated borrowing.
According to a Bloomberg report citing people familiar with the matter, the conglomerate, led by billionaire Gautam Adani, could contribute up to $1.45 billion in equity towards the transaction. The group is also exploring options to refinance approximately €1.3 billion in existing debt held by Evos. The individuals spoke on condition of anonymity because the financing discussions remain confidential.
The proposed funding arrangement comes as Adani Group strengthens its international presence, particularly across the ports and infrastructure sectors, through strategic acquisitions.
Under the proposed structure, Adani Group intends to combine a major capital contribution with financing from international lenders. The debt component is expected to be raised through a syndicated facility, potentially creating opportunities for several major financial institutions to participate.
The acquisition also comes at a time when India’s corporate takeover financing landscape is undergoing changes. Regulatory relaxations that took effect on July 1 allow domestic banks to finance up to 75 per cent of the value of corporate acquisitions, potentially encouraging greater participation by Indian lenders in large merger and acquisition transactions.
The report further added that the financing approach could resemble structures adopted in other major overseas acquisitions by Indian companies.
Tata Motors Ltd. arranged a €3.875 billion bridge loan to support its purchase of Iveco Group’s commercial vehicle business last year. Similarly, Sun Pharmaceutical Industries Ltd. used a combination of debt and cash financing for its $12 billion acquisition of Organon & Co.
MUFG Leads Initial Financing Arrangements
Mitsubishi UFJ Financial Group Inc. (MUFG) is currently the sole underwriter for the Evos acquisition financing. In its November 5 announcement confirming the transaction, Adani Group disclosed that MUFG had committed financing of up to €2.8 billion.
Several other international and domestic banks could subsequently join the financing arrangement. DBS Group Holdings Ltd., First Abu Dhabi Bank PJSC, Barclays Plc and State Bank of India are among the institutions reportedly discussing potential participation, the report states.
The proposed borrowing is initially expected to take the form of a bridge loan carrying a maturity period of approximately 18 months. The facility could later be replaced with longer-duration debt as the financing structure evolves.
However, negotiations have not been finalised, and the overall borrowing amount, terms and structure remain subject to change.
As per the report, a spokesperson for First Abu Dhabi Bank declined to comment, but added that the lender remains “committed to supporting our clients across the markets in which we operate and conducting our business in accordance with the highest standards of governance and regulatory compliance.”
SBI And MUFG Partnership Signals Growing M&A Opportunities
The potential involvement of State Bank of India highlights the growing role of domestic financial institutions in financing cross-border acquisitions.
India’s largest lender entered into a partnership with MUFG in March to explore merger and acquisition opportunities in the country. The collaboration followed the Reserve Bank of India’s decision to ease restrictions on domestic bank lending for corporate takeovers.
SBI also participated in the financing of Sun Pharmaceutical’s acquisition of Organon, demonstrating its increasing involvement in large-scale acquisition funding.
Commenting on the broader market outlook, Sarah Jane Mahmud, senior analyst at Bloomberg Intelligence, said, “India’s banking sector could soon be humming with more M&A deals as a privatisation push opens the door to more foreign control, with domestic bolt-ons getting a boost from more than $120 billion of excess capital.”
