Adani Group Eyes $1.5 Billion Yen Fundraise in Japan Following Rating Boost

Adani Group is planning to raise the equivalent of $1 billion to $1.5 billion in yen-denominated borrowings from Japan over the next 12 to 18 months, according to Bloomberg reports.  

The fundraising is expected to involve a combination of bonds and loans with maturities ranging from 5 to 15 years, marking the group’s first sizeable issuance in the yen market. 

The proposed transactions are likely to target Japanese asset managers, insurers and corporate treasuries, with domestic banks expected to help structure and anchor the deals. Borrowing costs, including hedging expenses, are estimated at around 8% to 8.5%, depending on market conditions and execution timing. 

Expanding Japanese Lender Exposure 

As per reports, Adani Group’s current exposure to Japanese lenders is estimated at about 10% to 12% of its total borrowings. The proposed fundraising could increase this share to roughly 20% to 25%.  

Japan is considered a key source of long-term capital for infrastructure and energy projects, with a large pool of institutional investors. 

Ratings Upgrade Prepares Market Access 

The fundraising plans follow recent long-term foreign and local currency ratings from the Japan Credit Rating Agency for Adani Green Energy, Adani Energy Solutions and Adani Ports and Special Economic Zone.  

The ratings are expected to support engagement with Japanese institutional investors and broaden the group’s currency mix beyond dollar-linked funding. 

Linked to Capital Expenditure Plans 

The yen borrowing is aligned with Adani Group’s capital expenditure programme, which could involve spending of up to $100 billion over the next five years across infrastructure, energy and logistics businesses.  

In recent years, the group has relied more on domestic lenders, while some international financiers reassessed exposure following regulatory scrutiny in the United States. 

Japanese financial institutions, including Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group, have continued lending to Adani companies. The proposed fundraising may be executed in multiple tranches, with banks expected to lead initial placements. 

Read More: Adani Group Stocks Gain After Clarification of US SEC Summons, States No Allegations Against Company! 

Conclusion 

The planned yen-denominated fundraising would add a new funding channel for Adani Group and extend debt maturities, while increasing access to Japanese institutional capital as the conglomerate pursues its investment programme. 

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