Adani Green in talks to raise $400 million in offshore loan

By P R Sanjai and Saikat Das

Adani Green Energy Ltd is in talks to raise about $400 million through an offshore loan as the unit of billionaire Gautam Adani seeks funds for an upcoming renewable project, according to people familiar with the matter.

The foreign currency loan could range from seven to ten years, with the pricing likely linked to the Secured Overnight Financing Rate, said the people, who asked not to be named because the discussions are confidential.

The unit of India’s ports-to-power conglomerate is in talks with a group of banks including Mitsubishi UFJ Financial Group Inc., First Abu Dhabi Bank PJSC, Standard Chartered Bank and Sumitomo Mitsui Financial Group Inc., said the people.

The company did not immediately respond to Bloomberg’s requests for comment.

The fundraising highlights that the Adani Group continues to regain the confidence of investors since being targeted early last year by US shortseller Hindenburg Research.

The conglomerate last month drew orders worth seven times the deal size for its first dollar-denominated public bond sale since the crisis. Earlier in December, Adani Green raised a $1.4 billion loan from a group of banks.

India’s focus on infrastructure, which is likely to continue if Prime Minister Narendra Modi is re-elected in elections due by May, may increase bond supply from the sector, Sharon Chen, a credit analyst with Bloomberg Intelligence, wrote in a note last month.

India is planning to nearly triple its clean energy capacity by the end of the decade, mostly through solar and wind projects, to decarbonize its fossil fuel-driven economy. The nation aims to invest $30 billion to build transmission lines to connect green power to the grid.