Japanese banks lead $750 million financing for Adani Energy amid India push

Company Overview - Adani Energy Solutions Ltd., controlled by Indian billionaire Gautam Adani, secured a $750 million loan led by Mitsubishi UFJ Financial Group Inc. and Sumitomo Mitsui Banking Corp. [1][2] - The loan is dollar-denominated with a five-year tenor, priced about 200 basis points over the benchmark Secured Overnight Financing Rate [2]. Industry Trends - The financing reflects the increasing interest of Japanese firms in India's rapidly growing economy, particularly in the financial services sector [3]. - Japanese banks have been significant lenders to Adani Group companies, maintaining their relationships even amid reassessments by other lenders [4]. Financial Strategy - Adani Group plans to raise up to $1.5 billion in yen-denominated debt over the next year and a half to diversify its financing sources [4]. - Proceeds from the recent loan will fund a high voltage direct current transmission project to transport solar power from Rajasthan to Uttar Pradesh, aligning with India's clean energy goals [5]. Future Outlook - The borrowing may be refinanced later through different currencies or types of debt, such as a US private placement [6]. - Japan Credit Rating Agency rated Adani Energy Solutions BBB+ with a stable outlook [6].