Half a dozen Adani Group portfolio firms to access domestic, global bond markets in near future

Six portfolio companies within the Adani Group, namely Adani Green Energy, Adani Ports & SEZ, Adani Energy Solutions, Adani Power, and two unlisted entities— Adani Airports and Adani Roads - under Adani Enterprises Ltd, will soon tap into both domestic and global bond markets.

The Adani Group has earmarked $84 billion for infrastructure investments over the next decade.

"These are vital assets for India. Adani Ports manages 30 per cent of India's cargo, Adani Airports handles 30 per cent of Indian passengers and cargo, and Adani Green is the largest renewable energy company," said Jugeshinder Singh, the Group Chief Financial Officer of Adani Group.

The majority of long-term funds will be sourced from global markets.

"The primary risk in infrastructure projects is duration. On average, our assets have a lifespan of about 30 years and, in some cases, 60 years in transmission sector. We require long-term funds for our projects. For all practical purposes, the domestic market is limited to 5 to 7-year durations," explained Singh.

"For every Rs 100 capital, 80 per cent will be sourced from the global capital market, and the remaining will be from the domestic market. This is based on the project durations," he added.

Currently, domestic issuances constitute about 6 per cent, with a target to increase it to 20 per cent.

"We aim to have Indian investors contribute to Indian infrastructure story. Wealth creation should occur here," stressed Singh.

In the June quarter of 2023-24, Adani's portfolio achieved a portfolio-level EBITDA increase to Rs 23,532 crore, registering a 42 per cent growth on an annual basis.

The core infrastructure and utility platform, ensuring consistent cash flows, accounted for 86 per cent of the total portfolio EBITDA, reaching Rs 20,233 crore in June 2023.

"This provides a high level of stability and multi-decadal earnings predictability and visibility. The strong profits have resulted in the portfolio maintaining a robust liquidity position, with a cash balance of Rs 42,115 crore at the end of June 2023, reflecting a 4.2 per cent increase from the previous quarter," according to the Adani Group.

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