Adani Power Ltd., the country’s largest private thermal power producer, intends to raise 80 billion rupees in local debt markets over the course of the current year, according to people familiar with the plans. The proposed funding is earmarked to support the company’s expansion program and to broaden its funding base.
The financing strategy is split between a 50 billion-rupee public debt issuance and approximately 30 billion rupees in loans to be provided by a consortium of lenders led by State Bank of India. Sources said the bank-led loan component could carry tenors in the two- to five-year range. Separately, the company is exploring the option of securing portions of the required funds through bilateral arrangements with large domestic institutions that could extend for up to 10 years.
Adani Power’s move to tap local debt markets reflects a push to diversify borrowing channels and to lock in longer-dated financing amid what the sources described as elevated electricity demand in India. The planned raise follows a previous local bond placement in January, when the company secured 75 billion rupees after a hiatus of nearly nine years from the local bond market.
People familiar with the matter also said Adani Power intends to issue bonds targeted at individual investors in the coming months as part of its broader funding plan. The company’s investor presentation specifies a capacity expansion objective: raising generation capability to 41,870 megawatts by the fiscal year ending 2032, from a current level of a little over 18,000 megawatts.
Credit assessment has been favourable at the local ratings level. Crisil Ratings, the India-focused arm of S&P Global, assigned an AA grade to Adani Power, citing the company’s strong market position and a diversified portfolio of coal-based power plants across multiple geographies.
While details such as the final structure and allocation between instruments remain subject to execution, the company’s stated plan centers on mixing public debt, syndicated loans and bilateral deals to secure needed capital for its expansion timetable.