Adani Energy Solutions Ltd. Has secured a $750 million loan led by Mitsubishi UFJ Financial Group Inc. And Sumitomo Mitsui Banking Corp., according to a press release issued Monday. The financing will support the company’s high voltage direct current (HVDC) transmission project, designed to carry solar power from Rajasthan to Fatehpur in Uttar Pradesh, as reported by Business Standard.
The dollar-denominated facility carries a five-year tenor and is priced approximately 200 basis points above the Secured Overnight Financing Rate (SOFR). The loan represents the latest in a series of investments by Japanese lenders in Indian infrastructure and financial services, signaling a growing interest in the rapidly expanding Indian economy.
According to Bloomberg, the financing highlights a broader trend of Japanese firms seeking growth and yield opportunities outside of their domestic market. Last year, Sumitomo Mitsui Financial Group Inc. Acquired a significant stake in Yes Bank Ltd., while Mizuho Financial Group Inc. Took a controlling interest in investment bank Avendus Capital Pvt. Ltd., demonstrating a deepening commitment to the Indian financial sector.
Japanese banking institutions have maintained financial ties with the Adani Group even during periods of scrutiny from other lenders following a U.S. Indictment, according to Business Standard. The Adani Group is currently planning further fundraising initiatives, though specific details were not disclosed.
The loan agreement was finalized with people familiar with the matter requesting anonymity due to the confidential nature of the details. Mitsubishi UFJ Financial Group and Sumitomo Mitsui Banking Corp. Did not immediately respond to requests for comment.