The Adani group is in advanced talks with top sovereign funds based in West Asia to raise up to $2.6 billion for its airport expansion and green hydrogen projects.
The group, which expects to close the ongoing financial year ending March with Rs 80,000 crore of Ebitda (earnings before interest, tax, depreciation, and amortisation), has held a series of road shows in London, Dubai, and Singapore with potential investors, briefing them about their future growth plans.
The group’s flagship, Adani Enterprises, may dilute part of its stake in the airport-holding firm and/or the green hydrogen business to these funds, which are keen to invest in the Indian infrastructure sector, said a source close to the development.
The timing of the fundraising has not been decided, but it is expected to hit the markets by mid-2024, the source said.
An Adani spokesperson declined to comment.
During the presentation to potential investors, the group highlighted the recent rating upgrades by global rating agencies, including Moody’s and S&P.
These agencies have reaffirmed ratings for all the Adani group companies and restored the ‘stable outlook’ of five entities.
At the same time, Fitch has maintained the ratings of all issuers within the Adani complex with a stable outlook.
“The infrastructure funds, which are looking for a long-term bet, are keen to invest in India, and Adani group companies are offering the opportunity to invest in equity,” said a banker close to the development.
“The investment by New York-based fund GQG has helped in restoring confidence among global investors," said the source.
In 2023, the Adani group companies raised capital via various domestic and international channels, including debt of over Rs 84,000 crore and stake sales to GQG partners for another Rs 35,000 crore, Qatar Investment Authority for approximately Rs 4,000 crore, and TotalEnergies for approximately Rs 2,500 crore, demonstrating confidence by international investors.
The investment by US International Development Finance Corp of $553 million as debt for a container terminal project in Sri Lanka also boosted investor sentiment, the banker said.
The group is all set to start the copper plant in Mundra next month and plans to get into the aluminum business to meet the rising demand in India.
The group also has captive use for copper and aluminum in the transmission line and electricity distribution business.
