Indian lenders exposure to Adani group up 50%

Group 1 - Indian and foreign lenders have significantly increased their exposure to the Adani group, with Indian lenders' exposure rising over 50% to over ₹1.3 lakh crore and foreign banks' exposure increasing 16% to ₹71,744 crore [1][2] - Domestic lenders' share in the total debt has increased to over 50% from 40% last year, indicating growing confidence in the Adani group [1][4] - The group has been actively engaging Indian institutions, exemplified by Life Insurance Corporation's investment of ₹5,000 crore in non-convertible debentures issued by Adani Ports and Special Economic Zone [4] Group 2 - The Adani group is under investigation by US regulators for alleged fraud, which has led to an 11% decline in funding through US dollar bonds as the group avoids overseas public bond markets [2] - Despite the investigations, lenders are reassured by the group's robust cash flows, which exceed ₹60,000 crore, and its focus on creating long-term infrastructure assets [5][6] - The group plans to invest around $70 billion in green energy, with 80% of its recent capital expenditure directed towards expanding its green energy portfolio [5][6] Group 3 - Last financial year, the group's capital expenditure was close to $15 billion, with an indication of annual spending of $15-20 billion over the next five years [6] - Over 80% of the group's total EBITDA of approximately ₹90,000 crore is derived from its core infrastructure businesses, including energy and transport [6] - The energy companies in the Adani portfolio have secured long-term power purchase agreements, providing cash visibility for extended periods, such as a 40-year PPA signed by Adani Green Energy for a pumped hydro project [7]