New Delhi: Adani Group is reportedly planning to raise around $800 million to finance new green energy projects. The move could be the conglomerate’s biggest borrowing since it faced accusations of corporate fraud by short seller Hindenburg Research in January, which resulted in the loss of more than $100 billion in market value. Adani Group is currently in discussions with global banks such as Sumitomo Mitsui Banking Corp., DBS Bank Ltd., Mitsubishi UFJ Financial Group, and Standard Chartered Plc, according to people familiar with the matter. The plan and size of the financing are not yet final and could still vary.
The Adani Group has been recasting its ambitions and prepaying loans to regain investors’ trust since the corporate fraud accusations. The group has also been working to promote sustainable investments in the green energy sector. With the proposed funding, Adani is looking to bolster its green energy portfolio and support India’s transition to clean energy.
Adani Group is one of India’s largest conglomerates with interests spanning energy, ports, airports, agriculture, and other sectors. The group has been expanding its presence in the renewable energy sector and aims to achieve a total renewable capacity of 25 GW by 2025. Adani Green Energy, the renewable energy arm of the group, has already commissioned over 15 GW of renewable capacity and is working on a further 12 GW of renewable projects.
This proposed funding would also demonstrate banks’ increasing comfort in extending money to Adani Group after the fraud accusations. The conglomerate has since denied the allegations and has been working to restore investor confidence through various measures such as restructuring its business and repaying loans.
Adani Group’s green energy projects are expected to contribute to India’s target of achieving 450 GW of renewable energy capacity by 2030. The country aims to transition to a low-carbon economy and has set ambitious targets to reduce its carbon emissions. Adani Group’s efforts to invest in green energy will support India in achieving these goals and contribute to global efforts to combat climate change.
Overall, the proposed funding would provide a boost to Adani Group’s green energy projects and support India’s transition to clean energy. The move would also demonstrate banks’ increasing confidence in Adani Group’s business and its efforts to regain investor trust after the corporate fraud accusations.