Adani Energy Seeking to Raise $600M in Credit

Adani Energy Solutions, a unit of India's Adani Group, is reportedly in talks to secure a credit facility of up to $600 million to finance smart meter projects for electricity supply. The company is engaging with a consortium of global lenders for this financing, with the potential loan duration ranging from three to five years. Pricing for the loan is expected to be tied to the Secured Overnight Financing Rate.

In December, Adani Energy Solutions entered into a partnership with UAE-based Esyasoft to undertake smart meter projects in India and abroad. The company has already received smart meter installation orders totaling 23 billion rupees ($276 million) in the quarter ended December. Additionally, it has expanded its transmission network by 302 circuit kilometers, as per filings earlier this year.

India's plan to deploy 250 million smart meters nationwide has attracted investments from various companies, including Schneider Electric SE and Electricite de France SA. These smart meters are seen as crucial tools for Indian power distribution companies to address billing inefficiencies, which have contributed to financial losses and high debt burdens.

Despite facing challenges, such as being targeted by US short seller Hindenburg Research last year, the Adani Group has been regaining investor confidence. The conglomerate, which operates coal plants and ports among other ventures, recently witnessed strong demand for its first public bond sale since the shortseller controversy.