Adani Ports Taps DBS for $150 Million Capex Loan
Reports claim that Adani Ports and Special Economic Zone Ltd. (APSEZ) has obtained around $150 million through a bilateral financing agreement with DBS Group Holdings Ltd., a company based in Singapore.
The company's capital expenditure plans are intended to be financed by the four-year loan.
This is the conglomerate's first bilateral loan from a multinational financial institution since it was charged with bribery by the US Department of Justice in November. With a portfolio that includes ports, logistics, energy, and infrastructure, the loan is interpreted as a sign of steadily increasing lender opinion toward the firm.
According to reports, the facility costs about 200 basis points more than the Secured Overnight Financing Rate (SOFR). Additionally, the estimated overall cost of the loan, including hedging expenses, is 5.5 percent.
To finance the purchase of a construction company, the Adani Group issued an offshore private placement bond last month, raising about $750 million. BlackRock Inc., a massive asset management company, allegedly took on around one-third of the problem.
At the same time, Adani is negotiating a possible $750 million loan to support its airport operations with a number of foreign banks, including Barclays Plc, First Abu Dhabi Bank PJSC, and Standard Chartered Bank Plc.
According to reports earlier this month, representatives of the Adani Group have met with US government officials to discuss the prospect of having the bribery-related charges dropped.
Due to a consistent improvement in cargo throughput, APSEZ earlier this month announced a 47.8 percent year-over-year increase in net profit attributable to equity stockholders for the fourth quarter of FY25.
Analysts' average of Rs.2,662.1 crore was surpassed by the company's quarterly profit of Rs.3,014.22 crore. The period's total cargo volumes increased by eight percent over the prior year to 117.9 million metric tons, mostly due to strong growth in container traffic.
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The quarter's operational revenue exceeded the forecasted Rs.8,094.4 crore by 23.1 percent year over year to Rs.8,488.44 crore. At Rs.5,382.13 crore, the quarter's overall expenses represented a 20.93 percent increase over the same period last year.