Adani Group looks to raise about $800 mln for financing green energy projects

Adani Group is aiming to raise about $800 million for new green energy projects, people familiar with the matter said, in what could be the conglomerate’s biggest borrowing since it was slammed by a short seller in January.

Billionaire Gautam Adani-led group is in discussions with global banks including Sumitomo Mitsui Banking Corp., DBS Bank Ltd., Mitsubishi UFJ Financial Group. and Standard Chartered Plc, according to the people, who asked not to be identified as the discussions are private.

The size of the financing could range from about $700 million to some $800 million, the people said. But the plan and size aren’t final, and could vary.

A representative from Adani Group declined to comment.

Sumitomo didn’t respond to emailed queries, texts, and calls while DBS, Mitsubishi and Standard Chartered declined to comment.

Any project financing could show banks’ increasing comfort in extending money, after Adani’s ports-to-power conglomerate was roiled by accusations of corporate fraud by Hindenburg Research.

Despite the group denying these allegations, it lost more than $100 billion in market value. Adani has since had to recast his ambitions as well as prepay some loans to assuage investors.

The conglomerate’s seven listed stocks, including Adani Green Energy Ltd, lost roughly $114 billion in market value earlier this year after Hindenburg Research’s report accused the group of unlawful use of offshore tax havens and stock manipulation. Adani has denied the allegations.

Meanwhile, India’s renewables sector is attracting increasing foreign investment, and was among the country’s top five industries for overseas funds last fiscal year, with a 5 percent share of all inflows from April to September 2022, compared with 3.3 percent in the same period a year ago.