Adani Green Secures $250 Million from Global Banks to Refinance Debt

Adani Green Energy Ltd., a subsidiary of the Adani Group led by Indian billionaire Gautam Adani, has arranged to secure approximately $250 million from a consortium of global lenders. This financial move, confirmed by sources familiar with the transaction, aims to refinance existing debt and strengthen the company’s capital structure.

The financing arrangement involves four key banks: DBS Bank Ltd., DZ Bank, Rabobank, and Bank SinoPac Co Ltd. The loan is structured to have a tenor of over five years, with an interest rate set at around 8.20%. While Adani Group, Bank SinoPac, and Rabobank did not respond to inquiries from Bloomberg, a spokesperson for DZ Bank confirmed its role in the syndication.

This financing initiative aligns with the Adani Group’s strategic objective to reduce its leverage over the next five years. Notably, the conglomerate has indicated it does not plan to issue bonds in international capital markets until 2027. The recent debt refinancing is part of a broader effort that includes significant capital activities; in March 2023, Adani Green refinanced a construction-linked loan worth ₹92.61 billion (approximately $1 billion) with Power Finance Corporation Ltd..

Broader Financial Landscape

The Adani Group has been actively restructuring its finances, having signed new credit facilities exceeding $10 billion in the first half of 2023. This includes various sectors within the group, such as its ports unit, Adani Green Energy, Adani Enterprises Ltd., and Adani Energy Solutions Ltd.. According to an August report by S&P Global Ratings, the funding costs for the Adani Group remain stable, with no significant increases anticipated.

The Adani family has also played a vital role in the company’s financial bolstering, injecting around $1.1 billion in equity into Adani Green Energy in July 2023. This infusion of capital highlights the family’s commitment to sustaining and growing their renewable energy arm amid evolving market conditions.

As Adani Green Energy continues to secure financial backing, its efforts underline the increasing importance of renewable energy initiatives within the global investment landscape. The recent funding signifies both the confidence lenders place in the company’s future prospects and the ongoing transformation of energy markets toward sustainable solutions.