Amid efforts to repair its reputation following a U.S. bribery probe, Adani Ports & SEZ Ltd. has secured a $150 million loan from DBS Bank, marking its first bilateral loan with a global lender post-indictment, Economic Times reported. The facility carries a pricing of approximately 200 basis points above the benchmark Secured Overnight Financing Rate (SOFR).
Adani Ports and Special Economic Zone Ltd. has raised $150 million via a four-year bilateral loan from DBS Group Holdings Ltd., as the Indian conglomerate seeks to re-establish its credibility among international creditors in the aftermath of a high-profile U.S. bribery probe, Economic Times reported citing people familiar with the matter.
The funds raised through this dollar-denominated loan will be directed towards capital expenditure, according to sources quoted by ET. The facility carries a pricing of approximately 200 basis points above the benchmark Secured Overnight Financing Rate (SOFR). Factoring in hedging costs, the total effective cost of borrowing is estimated at 5.5 per cent, one source told the newspaper.
This marks the first bilateral loan Adani Group has secured from a global lender since the U.S. Department of Justice indicted the group last November over alleged involvement in a bribery conspiracy. Both Adani Group and DBS Bank declined to comment on the transaction when contacted by ET.
The loan underscores Gautam Adani’s attempts to normalise financial operations after the scandal rocked investor sentiment globally. According to ET, the group had previously raised $750 million via offshore private placement bonds last month, part of which was subscribed by BlackRock Inc., which reportedly picked up a third of the issuance. The proceeds were channelled into the acquisition of a construction firm.