Adani's "Green" new issue

6 minute read

The Adani Group is an Indian conglomerate that is reported to derive more than 60% of its revenues from coal-related businesses. Following a volatile 2023, on 28 February its renewable arm Adani Green commenced a global roadshow for a new bond issue. Investors considering the new issue are encouraged to assess the interconnectedness between renewable and coal development operations, among other factors.

Adani is the world’s largest private sector coal developer. Observers – including rating agencies and courts – have cited interconnections, related party transactions, and contagion risks across the Adani Group. Examples include Adani Green shares being pledged in 2023 as collateral for debt facilities supporting greenfield coal mining.

Investors considering the new bond may want to examine the risks of possible future funding linkages and the alignment of sustainability targets across the Group.

The interconnectedness in particular raises important questions for investors across any Adani Group entity who have restrictions on funding greenfield thermal coal mining.

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