Adani New Industries Plans USD 3 Billion Capital Raise
Adani New Industries Ltd. is reportedly in discussions to raise up to USD 3 billion for capital expenditure, aiming to position itself as a significant player in India's green hydrogen sector. Sources familiar with the matter have revealed that the company is in talks with foreign lenders to secure the funds, planning to raise the money through offshore loans in two or three tranches over the next 12 months, with the process expected to commence in June.
The proposed loan's duration could range from three to five years, with pricing likely linked to the Secured Overnight Financing Rate (SOFR). Notable financial institutions involved in the discussions for the credit facility include DBS Bank, Deutsche Bank AG, First Abu Dhabi Bank PJSC, ING Bank NV, MUFG Bank, and Standard Chartered Bank Plc.
Adani New Industries aims to commence clean hydrogen production in the western state of Gujarat from 2027 and has outlined plans to invest as much as USD 50 billion over the next decade. The funds raised through this capital expenditure are expected to support the company's ambitious clean fuel production plan.
Prominent business figures like Gautam Adani and competitors, including Mukesh Ambani, are actively pursuing strategies for clean hydrogen production. This aligns with Prime Minister Narendra Modi's emphasis on clean energy technologies as a crucial element in India's efforts to achieve net-zero emissions by 2070. Modi, currently seeking a third term, has set ambitious climate goals, including increasing the share of clean-power capacity in the electricity mix to 50% by the end of the decade and guiding the economy toward net-zero emissions by 2070.
