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A unit of Indian billionaire Gautam Adani-led group plans to refinance part of its dollar debt with rupee funding over the next three months, following an upgrade of its credit rating to the highest level, two sources familiar with the matter said.
The unit, Adani Electricity Mumbai, has dollar bonds worth $831 million and $255 million maturing in February 2030 and July 2031, respectively, and plans to use the local borrowings to prepay part of this debt, the sources said on Friday.
The sources requested anonymity since they are not authorised to speak to media. The company did not respond to a Reuters email seeking comment.
Adani Electricity
Adani Electricity Mumbai‘s issuer as well as debt rating was raised by one notch by India Ratings earlier this week, making it India’s first private power distribution company to achieve the highest credit rating locally, according to bankers.
The rating for ₹10 billion ($108.8 million) of local debentures could be used to fund the prepayment of dollar bonds, the sources said.
“The upgrade allows the firm to replace existing dollar bonds with cheaper domestic funding, lowering its borrowing costs,” one of the sources said.
“A local issue is expected to draw interest from long-only investors, including insurance companies and pension funds that typically invest only in top-rated securities,” the person said.
Adani Ports and Special Economic Zone (APSEZ)
In May 2025, another Adani group company, Adani Ports and Special Economic Zone, replaced dollar bonds with domestic notes, following a rating upgrade.
India’s Adani group continues to face regulatory woes after the US markets regulator earlier this month asked a US court for help in serving summonses upon Gautam Adani and group executive Sagar Adani over alleged fraud and a $265 million bribery scheme.
Adani group has called the allegations “baseless” and said it would seek “all possible legal recourse” to defend itself.
While the group has tapped the dollar bond market, it has largely relied on the domestic market after shortseller Hindenburg Research in 2023 made allegations around its corporate governance practices. The group has denied the charges, and in September last year, India’s markets regulator dismissed some of the allegations.
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