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Adani Green hydrogen unit aims to get up to USD 3 bn in loans – EQ

Adani Green hydrogen unit aims to get up to USD 3 bn in loans – EQ


Adani Green hydrogen unit aims to get up to USD 3 bn in loans 

In Short-Adani Green’s hydrogen division is targeting up to $3 billion in loans, highlighting its ambitious financial plans for advancing hydrogen-related initiatives in the energy sector.

In Detail-

Green Hydrogen Investment
Adani New Industries Ltd. is in discussions to secure up to $3 billion in funding for capital expenditure, aiming to solidify its position in India’s green hydrogen sector. The company plans to raise the funds through offshore loans in two or three tranches over the next year, with talks commencing in June. The loan’s duration could span from three to five years, with pricing likely tied to the Secured Overnight Financing Rate. Lenders involved in the discussions include DBS Bank, Deutsche Bank AG, First Abu Dhabi Bank PJSC, ING Bank NV, MUFG Bank, and Standard Chartered Bank Plc.

“Adani New Industries plans to kickstart clean fuel production in Gujarat by 2027, with a potential investment of up to $50 billion over a decade,” sources revealed. The funds raised are expected to support this ambitious initiative, aligning with India’s broader push towards clean energy solutions.

National Green Hydrogen Push
Indian business magnates like Gautam Adani and competitors such as Mukesh Ambani are actively strategizing for clean hydrogen production, in line with Prime Minister Narendra Modi’s emphasis on the technology as a crucial component of India’s journey towards achieving net zero emissions by 2070. Modi’s administration has set forth ambitious climate targets, including increasing the share of clean energy in the electricity mix to 50% by 2030 and steering the economy towards net zero emissions by 2070.

Financial Implications
The planned capital expenditure by Adani New Industries signifies a significant commitment to green hydrogen production, aligning with the broader national agenda for sustainable energy solutions. The company’s strategic fundraising efforts underscore its dedication to playing a pivotal role in India’s transition towards cleaner energy sources.

Anand Gupta Editor - EQ Int'l Media Network