The Adani Group is in advanced discussions with a Middle Eastern sovereign fund to raise up to $1 billion for its airports division, said a report by Economic Times. This funding will support the expansion of Adani Airport Holdings and enhance its infrastructure.
Additionally, Adani Enterprises has launched a qualified institutional placement (QIP) to raise up to $500 million, with a greenshoe option for an additional $500 million. The group has scaled back its initial target from $2 billion due to global market fluctuations.
Citing a source, the report further said that the company is also aiming for the flexibility to raise part of the funds next year for its airports business, which is fully owned by Adani Enterprises.
Funds from the QIP will also be used to repay certain debts of its subsidiaries, primarily those of Adani Airport Holdings Limited.
Late last month, Adani Airport Holdings successfully raised ₹195 Crore (approximately $232.72 million) through a domestic bond issue.
Adani Airports, which operates seven airports and is constructing another in Navi Mumbai, has planned an investment of $21 billion over the next decade, according to group CFO Jugeshinder Singh, as mentioned by the report.
Adani plans to raise capital for Adani Airport Holdings in two phases, with the first round likely to be secured from the sovereign fund by the end of this quarter, though the fund’s name has not been disclosed, said the report.
A Middle Eastern sovereign fund refers to a state-owned investment fund that manages a country's reserves. These funds are typically used to invest in various assets, including stocks, bonds, real estate, and infrastructure projects, both domestically and internationally.
Some of the most prominent Middle Eastern sovereign funds include Abu Dhabi Investment Authority (ADIA), Public Investment Fund (PIF) of Saudi Arabia and Qatar Investment Authority (QIA).
ADIA has been a significant investor in the Adani Group, providing substantial capital for various projects. QIA has also backed the Adani Group with investments in different Ventures.
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