Adani Group looks to Japan for up to $1.5 billion as it broadens funding sources: Report

The Adani Group is exploring plans to raise as much as $1.5 billion in yen-denominated financing over the next 18 months, according to a Bloomberg report, as the Indian conglomerate seeks to diversify its borrowing profile and reduce reliance on dollar-linked funding.

First major foray into yen markets

People familiar with the matter told the aforementioned newswire agency that the group is considering a mix of bonds and loans, with maturities ranging from five to 15 years. The proposed fundraising would mark Adani’s first significant issuance in yen, adding a new currency to its funding mix.

Japanese asset managers, insurers and corporate treasuries are expected to be among the targeted investors, while domestic Japanese banks may play a lead role in structuring and anchoring the transactions.

Adani Group did not immediately respond to a request for comment on this development.

Reducing dollar exposure, widening capital access

The move comes amid growing global debate around the sustainability of the US dollar’s dominance and reflects Adani Group’s efforts to broaden its long-term funding sources. Diversifying currencies and investor bases is seen as a way to enhance balance-sheet resilience in a volatile global rate environment.

Funding push aligned with $100 billion capex plan

The planned yen borrowing is aligned with the conglomerate’s ambitious investment roadmap, which could involve capital expenditure of up to $100 billion over the next five years across infrastructure, energy and logistics businesses.

In recent years, the group has increasingly relied on domestic lenders to support expansion, even as some global financiers reassessed exposure following regulatory scrutiny in the US.

Japanese banks remain steady partners

Japanese financial institutions, including Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group, have continued lending to Adani companies and maintained relationships during periods of heightened market uncertainty.

According to people familiar with the discussions, the yen fundraising could be executed in multiple tranches, with Japanese banks potentially paving the way before broader institutional participation.

Ratings step lays groundwork

In a move seen as preparatory, Adani Green Energy, Adani Energy Solutions and Adani Ports and Special Economic Zone recently secured long-term foreign and local currency ratings from the Japan Credit Rating Agency, helping strengthen their credentials with Japanese investors.