Adani Group Is Courting Sovereign Funds For Investments Worth $2.6B Into Airports, Green Energy

The Adani Group is reportedly in advanced discussions with prominent sovereign funds based in the West Asia region, aiming to secure funding of up to $2.6 billion (₹21,578 crore) for its expansive airport expansion and green hydrogen initiatives.

What Happened: With expectations of reaching an EBITDA of ₹80,000 crore by the end of the current financial year in March, the group has embarked on a series of roadshows across key financial hubs such as London, Dubai and Singapore, Business Standard reported, citing sources.

These roadshows served as platforms to enlighten potential investors about the group’s forthcoming growth strategies.

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Showing Interest: Adani Enterprises, the group’s flagship entity, is contemplating diluting a portion of its ownership in its airport holding entity and its green hydrogen venture to these sovereign funds, which have shown interest in investing in India’s infrastructure domain, sources told the business publication. While the timing of the fundraising remains uncertain, it is expected to debut in the market by mid-2024.

Growing Investor Confidence: During the presentations delivered to prospective investors, the group reportedly emphasised recent rating upgrades from reputable global rating agencies like Moody's and S&P. These agencies have not only reasserted ratings for all Adani group entities but also reinstated a “stable outlook” for five of its affiliates. Fitch has also upheld the ratings of all Adani-related issuers with an unwavering outlook.

Recent infusions by New York-based fund GQG have significantly boosted confidence among global investors, sources told the daily.

As the Hindenburg Report’s allegations fade into the background, the Adani Group has been raising capital and debt amid a rebound of investor confidence in the Gautam Adani-backed conglomerate.

Further instilling confidence in investors has been the involvement of the US International Development Finance Corp, which extended a $553 million (₹4,589 crore) loan for a container terminal project in Sri Lanka.

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