Adani Group's CFO Reveals Plans for Increased Debt Exposure in Domestic Capital Markets

Friday, 30 August 2024, 18:50

Adani Group plans to double its debt exposure to domestic capital markets, reaching 10% of total loans. CFO Jugeshinder Singh emphasizes maturation within five years. As of March 2024, Indian capital markets account for roughly 5% of the group's outstanding borrowings. This shift underlines the conglomerate's strategy in balancing global and domestic funding, particularly for infrastructure and energy projects.

Indiatimes — Adani Group's CFO Reveals Plans for Increased Debt Exposure in Domestic Capital Markets

Adani Group's Strategy for Increased Debt Exposure

Mumbai: Adani Group plans to double its debt exposure to the domestic capital markets, reaching 10% of the conglomerate's total loans, said CFO Jugeshinder Singh. This increase is contingent upon the maturity of instruments used for funding, with a maximum maturity of five years.

Current Debt Exposure

As of March-end 2024, Indian capital markets account for about 5% of Adani Group's total borrowings of ₹12,404 crore.
Including longer-duration debts, the group may have up to 15% from local markets.

Latest Debt Instruments

Adani Enterprises is launching its first issue of non-convertible debentures worth ₹800 crore, available in tenures of 24, 36, and 60 months, with interest rates between 9.25% and 9.90%.

Capital Expenditure Plans

The company has earmarked ₹80,000 crore for various sectors including airports and roads, capitalizing on a 9% weighted average cost of capital.

Future Debt Strategy

Singh stated that while sectors like metals will tap domestic markets for funding, Adani Green and Adani Energy Solutions will seek finance from global arenas. This strategy balances risk-adjusted capital costs adaptable to project timelines and requirements.

Outlook on Debt and Investments

The Adani Group's debt in domestic lending makes up 36% of its total debt mix, up by 500 basis points this financial year. Singh emphasizes knowing the market's needs is critical for success in raising these funds.

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.