In a significant move to diversify its global funding sources, the Adani Group is preparing to raise $1.5 billion through yen-denominated debt from Japan over the next 12 to 18 months.
The fundraising plan, reported on January 30, 2026, follows a major credit rating boost from the Japan Credit Rating Agency (JCR), which has opened the doors to one of the world’s deepest pools of long-term institutional capital.
1. The JCR Rating Catalyst
The fundraising initiative was triggered by JCR initiating coverage on three key Adani entities with favorable investment-grade ratings. Notably, Adani Ports achieved a rating higher than India’s own sovereign credit rating.
| Adani Entity | JCR Rating | Sovereign Benchmark |
| Adani Ports & SEZ (APSEZ) | A- (Stable) | Above India Sovereign (BBB+) |
| Adani Green Energy (AGEL) | BBB+ (Stable) | At Par with Sovereign |
| Adani Energy Solutions (AESL) | BBB+ (Stable) | At Par with Sovereign |
2. Strategic Details of the $1.5B Raise
The conglomerate aims to utilize Japan’s ultra-low interest rate environment to secure financing that is typically difficult to find in other international markets.
- Instruments: A combination of yen-denominated bonds and syndicated loans.
- Target Tenors: Seeking maturities of 10, 20, and 30 years. Japanese institutional investors (insurers and pension funds) are known for their appetite for such long-duration infrastructure debt.
- Borrowing Cost: Including hedging, the cost is estimated between 8% and 8.5%, with room for moderation as the group deepens its relationship with Japanese lenders like MUFG, Mizuho, and SMBC.
- Portfolio Shift: This raise is expected to increase Adani’s exposure to Japanese capital from the current 12% to approximately 20%–25% of its total overseas borrowings.
3. Countering the “US Regulatory Overhang”
The pivot to Japan comes at a critical time as the group navigates a renewed legal battle in the United States.
- The SEC Summons: On January 23, 2026, Adani stocks faced a $12.5 billion wipeout after the US SEC sought court approval to serve summons via email to Gautam and Sagar Adani regarding a civil bribery investigation.
- Procedural Breakthrough: On January 30, 2026, lawyers for the Adanis agreed to formally accept the SEC service, eliminating the need for a contested court ruling on the matter. This procedural resolution has helped stabilize investor sentiment.
- Diversification Moat: By securing $1.5 billion from Japan, Adani is effectively building a “funding moat,” reducing its reliance on US dollar-linked markets while those legal proceedings move into a substantive review phase.
4. Future Roadmap: The $5 Billion Goal
The group’s long-term vision involves making Japan a primary pillar of its capital structure.
- Capex Alignment: The funds will support a $100 billion five-year capital expenditure plan across green energy, logistics, and power transmission.
- Scaling Up: Adani executives expect total Japanese borrowings to exceed $5 billion within the next three years as more group entities seek JCR ratings.
Conclusion: A Shift in Global Alliances
The move to Japan signals a maturing of Adani’s financial strategy. By shifting focus toward Japanese institutional investors who prioritize long-term infrastructure stability over short-term regulatory headlines, the group is successfully insulating its massive 2026 expansion plans from the volatility of Western capital markets.
