Adani looks to home to raise 1,000 crore over next 3 years

Core Viewpoint - Adani Group is significantly increasing its reliance on domestic financing amid global market volatility and ongoing legal challenges, aiming to support its ambitious infrastructure investment plans [1][3]. Financing Strategy - The conglomerate has ramped up funding from local debt capital markets to approximately $2 billion in 2025, a ten-fold increase from the previous year, with plans to raise this to $10 billion over the next three years [2]. - Local banks' share of Adani Group's total debt has risen from about 30% two years ago to roughly 50% as of September [11]. Investment Plans - Adani Group is pursuing a five-year investment plan that could involve capital expenditures of up to $100 billion, which may strain balance sheets if reliance on Indian lenders increases [3]. Market Conditions - The US Securities and Exchange Commission's actions regarding a fraud case against Adani have highlighted the uncertainties surrounding the conglomerate, making local funding more appealing [4]. - Despite scrutiny, local creditors are showing a strong willingness to extend more debt to Adani Group, indicating confidence in its projects [5]. Recent Fundraising Activities - Adani Group's flagship firm successfully issued a $110 million public rupee bond that was fully subscribed within an hour, and Adani Power Ltd raised ₹7,500 crore ($818 million) in local-currency bonds, marking its largest issuance [6]. - The group has also engaged multiple state-run entities and top private sector lenders for funding, including Life Insurance Corporation of India and HDFC Bank Ltd [7]. Diversification and Global Trends - The shift towards local lenders is seen as a sensible strategy in the current global environment, with local market liquidity being favorable for infrastructure investments [8]. - The group's diversification in funding reflects a broader trend of de-dollarisation and India's recalibration on the global stage, as evidenced by recent trade agreements [10]. Future Outlook - Adani Group plans to buy back at least $100 million in dollar bonds this year, increasing its share of local borrowing due to lower costs associated with issuing rupee debt [13]. - Despite challenges, the group has maintained access to liquidity and has successfully closed transactions amid legal uncertainties [15].