Adani Group's Potential to Double Debt Exposure in Domestic Capital Markets
Mumbai: Adani Group can potentially double its debt exposure in domestic capital markets to 10% of its total loans, according to CFO Jugeshinder Singh. This increase hinges on raising funds through instruments that mature within five years. Currently, local markets account for about 5% of Adani Group's total outstanding borrowings, around ₹12,404 crore as of March-end, 2024.
- Longer-duration debt could allow for up to 15% exposure.
- Adani Enterprises recently launched its first non-convertible debentures (NCD) issue worth ₹800 crore.
The NCD issue opens on September 4, closing on September 17, with tenures of 24, 36, and 60 months at rates of 9.25%, 9.65%, and 9.90%, respectively. The company has a planned capital expenditure of ₹80,000 crore for infrastructure, while relying on domestic debt for sectors like metals. Conversely, Adani Green and Adani Energy Solutions will source capital from global markets due to better risk-adjusted costs for longer terms.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.