Adani Group Unit to Refinance Dollar Debt via Rupee Markets Following Rating Upgrade

Adani Electricity Mumbai plans to replace part of its dollar-denominated debt with rupee funding over the next 3 months, according to Reuters reports.  

The company has $831 million of bonds due in February 2030 and $255 million due in July 2031. It intends to use domestic borrowings to prepay a portion of these liabilities.  

Credit Rating Upgrade 

India Ratings raised the issuer and debt rating of Adani Electricity Mumbai by one notch earlier this week, making it the first private power distribution company in India to receive the highest local credit rating, bankers said. Around ₹10 billion ($108.8 million) of local debentures could be used to fund the prepayment.  

A top domestic rating generally allows issuers to borrow at lower costs and access long-only investors such as insurance companies and pension funds. 

Shift Towards Domestic Funding 

The move fits into a broader shift by the Adani Group towards domestic capital markets. Local debt issuance rose to about $2 billion in 2025, with a target of up to $10 billion over the next 3 years, according to the group’s chief financial officer.  

Local lenders accounted for about 30% of total group debt two years ago, rising to roughly 50% by September, based on company filings. 

Regulatory and Market Background 

The group continues to face regulatory scrutiny. US authorities recently sought court assistance to serve summonses related to alleged fraud and bribery involving Gautam Adani and a senior executive.  

The group has denied the allegations and said it will pursue legal remedies. Corporate governance allegations raised by a short-seller in 2023 were partly dismissed by India’s market regulator.  

Read More: Adani Power Share Price in Focus; Announces Q3 FY26 Results! 

Conclusion 

The planned refinancing adds to the group’s increasing use of rupee funding as global markets remain volatile. The outcome will depend on investor demand, regulatory developments, and the group’s wider funding requirements linked to its investment plans. 

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