In a major show of institutional confidence, Adani Energy Solutions Ltd (AESL) has secured a $750 million (approx. ₹6,300 crore) long-term loan from a consortium of Japanese banks. The deal, announced on February 9, 2026, is a cornerstone of the group’s “Japan Strategy,” which aims to diversify its borrowing away from the US dollar toward the yen and other long-term capital pools.
The financing is led by Japanese banking giants MUFG Bank Ltd and Sumitomo Mitsui Banking Corporation (SMBC).
Project Focus: The Bhadla-Fatehpur Green Corridor
The proceeds are dedicated to one of India’s most critical renewable energy infrastructure projects: the 950-km high-voltage direct current (HVDC) transmission line.
- Connectivity: The line will link the solar-rich Bhadla region in Rajasthan to Fatehpur in Uttar Pradesh.
- Capacity: Configured as a high-capacity ±800 kV network, it can evacuate 6,000 MW of renewable power—enough to supply roughly 60 million households.
- Technology: The project utilizes advanced HVDC technology from Hitachi Energy in collaboration with BHEL, supporting the “Make in India” initiative.
- Timeline: The corridor is scheduled for commissioning by 2029.
Strategic Rationale: The “Japan Strategy”
This $750 million facility is part of a larger plan by the Adani Group to raise up to $1.5 billion from Japanese markets over the next 18 months.
1. Rating Upgrade Advantage
The loan follows a significant credit rating upgrade by the Japan Credit Rating (JCR) Agency in late January 2026.
- Adani Ports (APSEZ): Rated A- (above India’s sovereign rating).
- Adani Green & Adani Energy: Rated BBB+ (in line with the sovereign). These investment-grade ratings have opened doors to Japan’s ultra-deep pool of long-term capital, including insurance and pension funds.
2. Diversification & Cost Control
- Pricing: The dollar-denominated facility has a five-year tenor and is priced at approximately 200 basis points over the SOFR (benchmark rate).
- Currency Mix: Adani aims to increase its exposure to Japanese lenders from the current 12% to nearly 25% of its total overseas borrowings to hedge against a volatile US dollar.
3. “Green Loan” Classification
The financing was raised under AESL’s sustainable debt framework. This allows Japanese lenders to classify the facility as a Green Loan, helping them meet their own global ESG (Environmental, Social, and Governance) targets.
Market Impact
The news provided a boost to Adani Energy Solutions’ stock, which rose nearly 1% following the announcement. Analysts view the continued support from MUFG and SMBC as a “seal of approval,” signaling that major international banks are comfortable with the group’s credit profile despite ongoing regulatory scrutiny in other jurisdictions.
