Adani Green Energy Ltd., the renewable energy arm of the Adani Group, is in advanced talks with Indian lenders, including Power Finance Corporation (PFC), to refinance up to $1.1 billion in dollar-denominated debt with a rupee-based loan. The refinancing effort comes as the company faces limited access to international funding following allegations of financial misconduct against its founder, Gautam Adani.
Finalizing a Major Refinancing Deal
According to sources familiar with the matter, Adani Green Energy is in the final stages of securing a long-term rupee loan to settle its outstanding obligations, which are due by the end of March. The individuals, who requested anonymity due to the private nature of the negotiations, indicated that the refinancing deal is expected to be finalized soon.
If completed, this transaction would mark Adani Green’s largest domestic borrowing since the U.S. Department of Justice (DOJ) opened a probe into the company in November 2024. The allegations—centered around an alleged bribery scheme involving Indian government officials—have made it increasingly difficult for the company to raise funds in global markets.
Adani Green’s Market Struggles
Since the DOJ investigation surfaced, Adani Green Energy’s stock has dropped nearly 40%, reflecting investor concerns over the company’s financial standing and legal challenges.
The company had previously abandoned a planned $600 million dollar bond issuance in the wake of the U.S. investigation. The scrapped bond deal was initially meant to provide fresh capital for expansion but was withdrawn amid concerns over potential regulatory and reputational risks.
Allegations Against Gautam Adani and US Scrutiny
The ongoing probe by U.S. federal prosecutors has accused Adani, one of Asia’s wealthiest individuals, and his associates of attempting to pay over $250 million in bribes to secure solar energy contracts. According to the DOJ, the company allegedly concealed these dealings while seeking funding from U.S. investors.
Adani Group has vehemently denied the allegations, dismissing them as “baseless and politically motivated.” Despite these denials, the scrutiny has made international fundraising increasingly challenging for the conglomerate.
Looking Ahead: Domestic Funding as a Key Strategy
With its global funding avenues constrained, Adani Green Energy is now looking toward domestic financial institutions to meet its liquidity needs. The shift to rupee-denominated debt may help stabilize the company’s financial position, allowing it to restructure liabilities without exposure to currency volatility or international regulatory risks.
While Adani Group and PFC have yet to provide official comments on the refinancing deal, industry analysts suggest that securing local funding will be crucial for Adani Green’s future projects and its ability to navigate current legal and financial challenges.
The finalization of the refinancing deal is expected in the coming weeks.
