Adani Group Secures Financing Deal with Indian Banks
ECONOMY & POLICY

Adani Group Secures Financing Deal with Indian Banks

In a significant financing endeavor, the Adani Group has finalized a mammoth funding arrangement worth approximately $8.1 billion with a consortium of Indian public and private sector banks, spearheaded by the State Bank of India. The funds are earmarked for several key infrastructure ventures, including green hydrogen initiatives, a copper smelter unit, power generation, transmission, and road projects.

The consortium comprises five Public Sector Banks (PSBs) and three prominent private sector banks. Approximately 56 percent of the total loans will originate from state-owned banks, with the remainder secured from private lenders. Additionally, two finance institutions specializing in the power sector are also involved in the financing arrangement. The loans are being secured at interest rates ranging from 9 to 11 percent.

While a portion of the funding has already been secured, the complete arrangement is expected to be finalized by May, with disbursement planned throughout 3 to 5 years.

This significant funding initiative marks a departure from Adani Group's usual approach, which predominantly relied on international banks and overseas bond markets for its financing needs, particularly in the wake of allegations of fraud and mismanagement made by Hindenburg Research in January of the previous year.

The bulk of the funds raised will be allocated to the ambitious green hydrogen project, with an initial phase expected to have a capacity of 1 million tonnes by FY27. Approximately $3.2 billion has been earmarked for establishing the green hydrogen ecosystem, envisioning an investment of around $50 billion over the next decade to produce 3 million tonnes of hydrogen.

Moreover, a substantial portion of the financing, approximately $1.3 billion, will be channeled into road projects, while $1.1 billion is allocated for a $1.2-billion, 1-million-tonne copper project, the first phase of which is slated to commence operations next month. Adani Group's transport and logistics division also plans to bolster its position in the road business, aiming to be among the top three players by 2025, leveraging its existing road network spanning 5,000 kilometers.

The remaining funds will be directed towards augmenting power and transmission assets, as well as facilitating the commissioning of a 2-million-tonne coal-to-PVC project in Mundra, with the initial phase set to be operational by FY26.

Last year, Jugeshinder Singh, the Group CFO, outlined Adani Group's ambitious investment blueprint, signaling intentions to allocate approximately $84 billion over the ensuing decade towards various ventures and projects.

In a significant financing endeavor, the Adani Group has finalized a mammoth funding arrangement worth approximately $8.1 billion with a consortium of Indian public and private sector banks, spearheaded by the State Bank of India. The funds are earmarked for several key infrastructure ventures, including green hydrogen initiatives, a copper smelter unit, power generation, transmission, and road projects. The consortium comprises five Public Sector Banks (PSBs) and three prominent private sector banks. Approximately 56 percent of the total loans will originate from state-owned banks, with the remainder secured from private lenders. Additionally, two finance institutions specializing in the power sector are also involved in the financing arrangement. The loans are being secured at interest rates ranging from 9 to 11 percent. While a portion of the funding has already been secured, the complete arrangement is expected to be finalized by May, with disbursement planned throughout 3 to 5 years. This significant funding initiative marks a departure from Adani Group's usual approach, which predominantly relied on international banks and overseas bond markets for its financing needs, particularly in the wake of allegations of fraud and mismanagement made by Hindenburg Research in January of the previous year. The bulk of the funds raised will be allocated to the ambitious green hydrogen project, with an initial phase expected to have a capacity of 1 million tonnes by FY27. Approximately $3.2 billion has been earmarked for establishing the green hydrogen ecosystem, envisioning an investment of around $50 billion over the next decade to produce 3 million tonnes of hydrogen. Moreover, a substantial portion of the financing, approximately $1.3 billion, will be channeled into road projects, while $1.1 billion is allocated for a $1.2-billion, 1-million-tonne copper project, the first phase of which is slated to commence operations next month. Adani Group's transport and logistics division also plans to bolster its position in the road business, aiming to be among the top three players by 2025, leveraging its existing road network spanning 5,000 kilometers. The remaining funds will be directed towards augmenting power and transmission assets, as well as facilitating the commissioning of a 2-million-tonne coal-to-PVC project in Mundra, with the initial phase set to be operational by FY26. Last year, Jugeshinder Singh, the Group CFO, outlined Adani Group's ambitious investment blueprint, signaling intentions to allocate approximately $84 billion over the ensuing decade towards various ventures and projects.

Next Story
Resources

RentenPe and Mygate Partner to Transform Rent Payments in India

Through a strategic partnership, RentenPe and Mygate aim to streamline rent payments and promote financial inclusion by enabling rent-based credit scores for Indian renters. RentenPe, India’s first Rent Credit Score™ platform and a pioneer in rental fintech innovation, has entered a significant alliance with Mygate, the leading community management app in the country. This partnership will transform rent transactions for millions of Indian households by embedding RentenPe’s payment and rent credit scoring technology directly within the Mygate app. With this integration, all ren..

Next Story
Real Estate

Supreme Unveils New Brand Identity to Elevate Lifestyle

Supreme, a respected name in Indian real estate with a four-decade legacy, has announced a complete rebranding. The move includes the launch of a new logo and a revamped website, both reflecting the group’s refreshed vision to ‘Elevate Lifestyle’. This brand transformation represents more than a visual refresh—it marks a strategic shift in the company’s mission, visual identity and market positioning. The update will be visible across all of Supreme’s digital, social and offline communication platforms. At the core of the initiative is a renewed focus on purposeful design..

Next Story
Infrastructure Urban

Capri Loans Launches #TarrakiKeHaath Campaign Honouring India’s Everyday Heroes

Capri Global Capital Ltd (Capri Loans), a leading non-banking financial company, has unveiled its latest brand campaign, #TarrakiKeHaath, a powerful tribute to the everyday hands that build India — from kirana store owners and taxi drivers to dhaba workers, tailors, and carpenters. Narrated by Capri Loans’ long-standing brand ambassador and acclaimed actor Pankaj Tripathi, the campaign celebrates the dignity, resilience, and aspirations of self-employed individuals and small business owners who form the backbone of Bharat’s economy. Conceptualized by Rediffusion Brand Solutions, the..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?