National banks have become comfortable lending the group because most of their businesses have predictable cash flows, such as public services, roads and transmission projects.
The loans of the Adani Group of Indian Financial Banks and Institutes have increased about four times in recent years, since the conglomerate depends more and more on local banks, with global capital markets, especially, turning.
Just before Hindenburg’s investigation accusations against the group in early 2023, the long -term loans of the group of Indian lenders were in around ₹ 27,000 million rupees, while currently near ₹ 1 Lakh Crore, the sources said.
The loans of national banks, institutions and non -bank financial companies now form 42 percent of their total loans, while those of global capital markets are at 23 percent, according to the group’s data. The loans of global banks are 27 percent of the total.
The sources said that national banks have become comfortable lending the group because most of their businesses have predictable cash flows, such as public services, roads and transmission projects.
“We have highly predictable cash flows with long -term visibility of stable annuities,” said an official. He pointed out that there was very little refinancing risk since the refinancing that will overcome in the future is much lower than the annual cash flows of the group. At the end of September last year, the group had more than ₹ 53,000 million rupees in cash balances.
Aggressive loan
The group is a beneficiary of aggressive loans from banks to priority sectors such as renewable energy, roads and infrastructure, where the Adani group has a significant presence through the various companies in the portfolio.
The three quarters of the Ebitda group (profits before interest, taxes, depreciation and amortization) constitute qualified assets such as AA or superiors.
The group has also been making a conscious decision to borrow more from India, especially from loan institutions, since it has cheaper Bech to borrow nationwide than abroad.
It is able to borrow 8-9 percent substantializing its cost of funds and its capital cost has fallen more than 100 basic points in the last year or so.
Posted on April 23, 2025