Gautam Adani's group is set to buy Dutch liquid storage company Evos B.V. for $2.9 billion, one of its biggest international moves yet.
To make it happen, it's splitting the bill: about one-half will come from its own funds (equity), and the rest through big loans arranged by banks like Mitsubishi UFJ Financial Group Inc. which is providing financing commitments for up to €2.8 billion.
Adani Group bridge loan, 75% coverage
The plan starts with a bridge loan (think: short-term cash boost), which it could swap out for longer-term debt later on, a move that's become pretty common for Indian companies making big global buys lately.
Thanks to a recent rule change, Indian banks can now cover up to 75% of these deals, giving Adani more room to grow fast.
The group is also chatting with lenders like SBI, Barclays, and DBS as part of its bigger goal: investing $100 billion over the next few years.