To avoid US legal regulation and high-cost bond markets, Adani Group turns to private financing

Golden Ten Data reported on March 11 that, according to sources familiar with the matter, a subsidiary of the Adani Group has raised approximately $500 million through a private placement to funds managed by Apollo Global Management. This highlights the ongoing efforts of the Indian conglomerate to secure financing from channels outside the public US dollar bond market. Sources stated that a company controlled by Adani Energy Solutions Ltd., led by Gautam Adani, sold these 15-year private bonds, with the comprehensive rupee-equivalent cost after deducting various fees being about 8.5%. The company plans to use these funds to refinance existing US dollar debt. Adani was once one of India's largest bond issuers, and this financing underscores a shift in its funding strategy. Although the group is raising funds for ambitious capital expenditure plans, it faces rising borrowing costs in the public US dollar bond market and is also affected by advancing legal risks from the US. The group previously stated it plans to rely more on the domestic market and is increasingly engaging with Japanese lending institutions.