Adani Green in talks for $400 million offshore loan
What's the story
Adani Green Energy Ltd., a subsidiary of billionaire Gautam Adani's extensive business conglomerate, is reportedly negotiating an offshore loan of approximately $400 million. The funds are intended for an upcoming renewable energy project. The potential foreign currency loan could span seven to 10 years, and its pricing is anticipated to be tied to the Secured Overnight Financing Rate.
Financial talks
Major financial institutions involved in loan discussions
Adani Green Energy is believed to be in discussions with several major financial institutions regarding the loan. These include Mitsubishi UFJ Financial Group Inc., First Abu Dhabi Bank PJSC, Standard Chartered Bank, and Sumitomo Mitsui Financial Group Inc. The fundraising initiative comes as the Adani Group steadily regains investor trust following allegations of fraud from US-based short seller Hindenburg Research last year. In December, Adani Green secured a $1.4 billion loan from a consortium of banks.
Clean energy
India's intensified focus on clean energy infrastructure
This development coincides with India's increased emphasis on infrastructure growth, particularly in the clean energy sector. If Prime Minister Narendra Modi secures another term in the upcoming elections which start April 19, this focus is expected to continue. This could potentially lead to an increased bond supply from the sector as part of India's strategy to transition away from fossil fuels.
Energy goals
India's ambitious clean energy goals by 2030
India aims to nearly triple its clean energy capacity by 2030, primarily through solar and wind projects. This ambitious goal is part of the country's strategy to transition away from fossil fuels. To achieve this, India plans to invest $30 billion in constructing transmission lines that will connect green power sources to the grid.