EQT Infrastructure investors and off-shore capital raising for Adani Group

1 minute read

The General Partners and Limited Partners of EQT Infrastructure Funds IV and V should examine potential capital raising by portfolio company EdgeConnex’s joint venture AdaniConneX, as this could be viewed as a financing transaction for Adani Power and, more broadly, Adani Group.

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.

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