Adani Group can double local debt exposure: CFO
Adani Group can double its debt exposure to the domestic capital markets to 10% of the conglomerate's total loans so long as the instruments used to raise funds mature within five years, said the group's chief financial officer, Jugeshinder Singh.
Indian capital markets currently account for about 5% of Adani Group's total outstanding borrowings, or ₹12,404 crore, as of March-end, 2024.
If longer-duration debt is included, the group will also be open to having as much as 15% of its debt from the local capital markets, Singh told ET, after launching Adani Enterprises' maiden non-convertible debentures' issue of ₹800 crore.
This issue by the flagship company of the Adani Group will open on September 4, and close on September 17. The debt instruments are available in tenures of 24, 36 and 60 months with an interest rate of 9.25%, 9.65% and 9.90%, respectively.
Adani Enterprises, which has outlined a capital expenditure of Rs 80,000 crore for the year for its various businesses including airports and roads, has a 9% cost of capital on a weighted average basis. Singh said that this NCD issue was a «small start» to the debt issues that the group would be bringing over the next two decades, reiterating that core infrastructure and energy development in a country must be done with the capital of the country.
The group's debt though domestic lenders, including banks and non-banking financial institutions, meanwhile, is 36% of their total debt mix, up by around 500 basis points through 2023-24 (Apr-Mar). Including
