Press reports indicate that Adani Group is reaching out to a syndicate of banks to obtain offshore funding. The funding vehicle is AdaniConneX, a joint venture between Adani Group and EdgeConneX, a portfolio company of the Swedish private equity house EQT and, specifically, the EQT Infrastructure Funds IV and V.
"Transparency & Accountability" is included as a focus area in EQT’s sustainability framework and thus it seems appropriate, given the compressed timeframe and comparable values in the sale and loan process, for investors to examine the JV/AdaniConneX’s property company purchase and subsequent search for funding, considering broader concerns in the market around Adani Group governance and cross-group funding.
We suspect Adani Power would currently have difficulties raising dollar funding on a standalone basis. Aside from the governance concerns this transaction raises, Adani Power is central to Adani Group’s efforts to increase thermal coal mining in India and abroad.