Adani Group, a ports-to-power conglomerate led by billionaire Gautam Adani, is reportedly in talks with global banks to raise funds for its green energy projects. According to sources familiar with the matter, the group is seeking to raise around $800 million, which could be its biggest borrowing since being accused of corporate fraud by Hindenburg Research in January.
Adani Group is currently engaged in talks with banks, which include Sumitomo Mitsui Banking Corp., DBS Bank Ltd., Mitsubishi UFJ Financial Group, and Standard Chartered Plc. It is said that the size of the financing could be between $700 million to $800 million, but it is not final and may be subject to change. Adani Group’s representatives declined to comment on the matter. On the other hand, some banks declined to provide a comment, while others did not respond to queries.
If this potential financing proceeds, it may suggest that banks are now more willing to extend credit to Adani Group despite the allegations of corporate fraud that caused the conglomerate to lose more than $100 billion in market value. Despite denying the accusations, the group had to re-evaluate its goals and prepay some loans to regain the trust of investors.
Adani Group is renowned for its business concerns in ports, power, mining, and logistics. Nevertheless, of late, the conglomerate has been broadening its footprint in sustainable energy. Its target is to morph into the world’s largest renewable power enterprise by 2030, with designs to originate 25 gigawatts of renewable energy capacity by that year.
The potential fundraising could assist Adani Group in hastening its eco-friendly energy objectives, which coincide with India’s lofty renewable energy goals. India is striving to achieve 450 gigawatts of renewable energy capacity by 2030, a significant surge from the current figure of approximately 100 gigawatts. Adani Group has been among the most prominent beneficiaries of India’s push towards sustainable energy, having procured several contracts to construct solar and wind power ventures across the nation.
The conglomerate has been gathering financial resources from a multitude of origins to support its environmentally-friendly undertakings. In the first month of this year, it acquired an unprecedented sum of $1.35 billion by issuing green bonds, marking the largest-ever release by an Indian corporation. In addition, it secured $2 billion in loans from foreign banks in 2020 to finance its ecologically-conscious initiatives.
Despite the recent hurdles that the Adani Group has faced, it continues to maintain a dominant presence in India’s commercial panorama, with its interests spanning a multitude of domains. Its venture into renewable energy has attracted the attention of investors, and the potential fundraising could significantly bolster its standing in the industry.
