Adani New Industries Ltd. is in talks to raise up to USD 3 billion for capital expenditure, according to people familiar with the matter, as the unit of India’s ports-to-power conglomerate aims to become a major player in the country’s green hydrogen push.
The company is discussing the planned transaction with a group of foreign lenders and is likely to raise the money via offshore loans in two or three tranches over the next 12 months, with the process starting in June, the people said, asking not to be identified because the details are private.
The loan’s tenor could range from three to five years, with the pricing likely linked to the Secured Overnight Financing Rate, they said. Lenders discussing the credit facility with the company include DBS Bank, Deutsche Bank AG, First Abu Dhabi Bank PJSC, ING Bank NV, MUFG Bank and Standard Chartered Bank Plc.
Adani Group representative did not offer any immediate comment.
Adani New Industries plans to begin production of the clean fuel from 2027 in the western state of Gujarat, and could invest as much as USD 50 billion over 10 years, according to the company. Proceeds from the fundraising could be used to support this plan, the people said.
Tycoons like Gautam Adani and rivals including Mukesh Ambani are firming up plans for clean hydrogen production as Prime Minister Narendra Modi pushes the technology as a major part of the nation’s effort to hit net zero emissions by 2070.
Modi, who is seeking a third term, has set an ambitious range of climate goals over the past decade. These include lifting the share of clean-power capacity in its electricity mix to 50% by the end of the decade, from around 40% now, and guiding the economy toward net zero by 2070.
