The Adani Group is preparing to raise between $1 billion and $1.5 billion through yen-denominated borrowings from Japan over the next 12 to 18 months, leveraging one of the world’s deepest sources of long-term capital following credit ratings upgrades by the Japan Credit Rating Agency (JCR).
JCR recently assigned ratings to three Adani companies—Adani Ports and Special Economic Zone (A-, above India’s sovereign rating), Adani Green Energy (BBB+, at par with the sovereign), and Adani Energy Solutions (BBB+, at par with the sovereign). These upgrades are expected to broaden Adani’s investor base in Japan, opening access to banks, insurers, pension funds, and institutional investors who prefer long-tenor debt of 10 to 30 years, significantly longer than domestic borrowing options.
The borrowings will be raised via a combination of yen bonds and loans across the three companies, with hedged borrowing costs currently around 8–8.5%, potentially decreasing depending on market conditions. Japan’s low government bond yields and deep liquidity make it a highly attractive market for infrastructure-heavy groups like Adani.
Following this fundraising, the group’s exposure to Japanese lenders could rise to 20–25% of its overseas borrowings, up from the current 10–12%. Adani already has about $3 billion in Japanese debt as part of roughly $15 billion in overseas borrowings spread across entities including Adani Ports, Adani Green, Adani Energy Solutions, and Adani Enterprises. Over the next two to three years, total Japanese borrowings are expected to exceed $5 billion as the group deepens its relationships with local banks such as MUFG and Mizuho.
The JCR ratings place these Adani entities among India’s top corporates, joining companies such as Tata Consultancy Services, Larsen & Toubro, and Reliance Industries that hold ratings above the sovereign threshold.
