Global banks grant Adani Group $275 million loans in 2025.

In August 2025, the Adani Group one of India’s largest conglomerates, secured $275 million in foreign currency loans from global banks, marking a significant milestone in its ongoing efforts to expand its financial resources. This development, reported by multiple sources including Bloomberg, Business Standard, and NDTV Profit, underscores a resurgence of investor confidence in the Adani Group following a tumultuous period marked by a 2023 Hindenburg Research report and a 2024 U.S. indictment.

The loans, divided between Adani Airport Holdings Ltd. ($150 million) and Adani Ports & Special Economic Zone Ltd. ($125 million), are aimed at supporting capital expenditure, debt refinancing, and operational expansion. This article delves into the details of these loans, their structure, the banks involved, their implications for the Adani Group, and the broader context of the conglomerate’s financial strategy in 2025.

Details of the $275 Million Loans

The Adani Group’s latest financial maneuver involves two distinct loan agreements:

1. Adani Airport Holdings Ltd. ($150 million): This syndicated foreign currency loan was secured from a consortium of global banks, including Barclays Plc, DBS Bank Ltd., First Abu Dhabi Bank, and Mitsubishi UFJ Financial Group (MUFG). The loan carries an interest rate of approximately 300 basis points above the Secured Overnight Financing Rate (SOFR), with a four-year tenor. The proceeds are earmarked for capital expenditure and dollar bond buybacks, supporting the group’s ambitious plans to enhance its airport infrastructure across India.
2. Adani Ports & Special Economic Zone Ltd. ($125 million): This bilateral loan was arranged with Mitsubishi UFJ Financial Group, priced at 215 basis points above SOFR, also with a four-year tenor. The funds will be used for capital spending and bond buybacks, aligning with Adani Ports’ goal of expanding its logistics and port operations.

These loans add to the Adani Group’s recent fundraising efforts, with the conglomerate securing over $10 billion in new credit facilities in the six months prior to August 2025, representing roughly one-third of its total debt. The loans reflect growing confidence among global lenders, as noted by S&P Global Ratings, which recently upgraded the outlook for three Adani units due to improved access to credit.

Table: Breakdown of Adani Group’s $275 Million Loans in 2025

Notes:

• SOFR (Secured Overnight Financing Rate): A benchmark interest rate, approximately 5.3% in August 2025, making the effective rates 8.3% (airports) and 7.45% (ports).
• Sources: Bloomberg (August 20, 2025), Business Standard (August 21, 2025), NDTV Profit (August 20, 2025).

Context and Background

The Adani Group, led by billionaire Gautam Adani, operates across diverse sectors, including ports, airports, energy, cement, and green energy. With a total debt of approximately $30 billion, the conglomerate has been actively seeking funds to support its expansive growth strategy. The $275 million loans are part of a broader trend of increasing borrowings, with significant deals in 2025, including a $750 million loan for Mumbai International Airport in June, managed by Adani Airport Holdings, led by Apollo Global Management Inc., and a $750 million offshore bond issuance in April.

The group’s ability to secure these loans comes despite challenges posed by a 2023 Hindenburg Research report alleging stock manipulation and accounting fraud, which wiped out over $150 billion in market value at its peak. Additionally, a November 2024 U.S. indictment accused Gautam Adani and seven others of paying $265 million in bribes to secure solar power contracts, allegations the group has denied. Despite these setbacks, the Adani Group has regained lender confidence, as evidenced by its $10 billion in new credit facilities over six months and S&P’s positive outlook revision.

Banks Involved and Their Role

The involvement of prominent global banks—Barclays, DBS, First Abu Dhabi Bank, and MUFG—signals a renewed trust in the Adani Group’s financial stability. These institutions have a history of engaging with the conglomerate, with Barclays, DBS, and MUFG also participating in a $750 million loan discussion for Adani’s airport unit in April 2025. Mitsubishi UFJ Financial Group’s dual role in both the syndicated and bilateral loans highlights its significant exposure to Adani, reflecting confidence in the group’s repayment capacity.

However, some banks remain cautious. Following the 2024 U.S. indictment, Reuters reported that certain global banks considered pausing fresh credit due to reputational risks, though existing loans were maintained. Representatives from DBS, First Abu Dhabi Bank, Barclays, and MUFG declined to comment on the $275 million loans, indicating the sensitive nature of these transactions.

Purpose and Strategic Implications

The loans serve multiple strategic purposes for the Adani Group:

1. Capital Expenditure: Both Adani Airport Holdings and Adani Ports are investing heavily in infrastructure. The airport unit manages seven major airports in India and is preparing to launch a $2 billion international hub near Mumbai. The ports division, a global leader in port operations, is expanding its logistics network to strengthen India’s maritime trade capabilities.
2. Debt Management: The proceeds will partially fund dollar bond buybacks, helping the group optimize its debt structure by reducing high-cost liabilities. This follows a pattern of proactive debt management, with the group prepaying $2.15 billion in share-backed loans in 2023 to restore investor confidence post-Hindenburg.
3. Operational Expansion: The funds support Adani’s broader growth strategy, including enhancing non-aeronautical businesses at airports (e.g., retail, lounges) and expanding port capacities to handle increased trade volumes.

The loans align with Adani’s goal of tripling passenger capacity to 300 million by 2040 at its airports and maintaining its dominance in India’s port sector. The group’s record EBITDA of Rs 89,806 crore in FY25, up 8.2% year-on-year, and a net debt-to-EBITDA ratio of 2.6 indicate financial resilience, supporting its ability to service these loans.

Challenges and Risks

Despite the positive developments, the Adani Group faces several risks:

1. Regulatory and Legal Scrutiny: The 2024 U.S. indictment, though denied by Adani, could deter some investors and lenders, potentially increasing borrowing costs. S&P noted that the indictment might impair funding access if investor confidence wanes.
2. Debt Levels: With total debt at Rs 2.6 lakh crore (approximately $31 billion) as of June 2025, of which 50% is from domestic lenders, the group’s reliance on borrowing raises concerns about long-term sustainability, especially if economic conditions worsen.
3. Reputational Risks: Allegations of fraud and bribery, coupled with past regulatory challenges, could impact public perception and investor sentiment. The group’s ability to maintain transparency and address these concerns will be critical.
4. Economic Volatility: Fluctuations in global interest rates, such as SOFR, and India’s economic conditions (e.g., RBI’s interest rate policies) could affect the cost of servicing these loans.

Broader Implications for the Indian Economy

The Adani Group’s ability to secure international financing reflects positively on India’s infrastructure sector, which is critical for economic growth. The group’s investments in airports and ports enhance connectivity and trade, supporting India’s ambition to become a global economic powerhouse. The loans also highlight the growing integration of Indian conglomerates into global financial markets, with foreign banks playing a pivotal role in funding domestic projects.

However, the group’s increasing dependence on domestic banks (50% of borrowings as of June 2025, up from 40% a year ago) raises questions about systemic risk. A potential default, though unlikely given Adani’s liquidity buffer, could strain India’s banking sector. The RBI’s interest rate cuts in 2025 have facilitated cheaper domestic borrowing, but global lenders’ confidence is crucial for large-scale projects.

Public and Media Reaction

Media coverage of the loans was extensive, with outlets like Bloomberg, Business Standard, and The Financial Express emphasizing the renewed lender confidence and the strategic use of funds. India.com reported the loans as equivalent to Rs 2,500 crore, highlighting their role in bond buybacks and expansion. However, no direct posts on X specifically referenced these loans, though related discussions about Adani’s financial activities (e.g., @IndustrlPolicy’s post on Chinese partnerships) suggest ongoing public interest in the group’s operations.

Adani Group’s Future Outlook

The $275 million loans strengthen Adani’s financial position, enabling it to pursue ambitious projects while managing debt. The group’s proactive debt prepayments, robust EBITDA growth, and diversified portfolio mitigate risks associated with its high leverage. Upcoming projects, such as the Navi Mumbai International Airport, expected to commence operations soon, and continued port expansions, position Adani as a leader in India’s infrastructure landscape.

To sustain lender confidence, Adani must address legal challenges transparently and maintain strong financial performance. The group’s ability to navigate regulatory scrutiny and deliver on its growth plans will determine its long-term success in a competitive global market.

Conclusion

The $275 million loans secured by the Adani Group in August 2025 from global banks like Barclays, DBS, First Abu Dhabi Bank, and MUFG mark a significant step in its financial recovery and expansion strategy. These loans, structured to support capital expenditure and debt management, reflect growing investor confidence despite past controversies. While challenges such as legal risks and high debt levels persist, the Adani Group’s robust financial metrics and strategic focus position it well for future growth. The loans not only bolster Adani’s infrastructure ambitions but also underscore the critical role of global financing in India’s economic development. As the conglomerate continues to navigate a complex financial landscape, its ability to maintain transparency and deliver on its commitments will be key to sustaining this momentum.