Adani Energy Solutions Ltd has secured a $750 million long-term loan led by major Japanese lenders, underscoring growing foreign interest particularly from Japan in India’s infrastructure and clean energy ecosystem.
The dollar-denominated facility carries a five year tenor and is priced at roughly 200 basis points over the Secured Overnight Financing Rate (SOFR), according to people familiar with the transaction. The funding was led by Mitsubishi UFJ Financial Group and Sumitomo Mitsui Banking Corp, as per a company release.
Funding to Back Flagship Green Transmission Project
The proceeds from the loan will be used to fund Adani Energy’s high voltage direct current (HVDC) transmission corridor, designed to transport large volumes of solar power from Rajasthan’s desert region to Fatehpur in Uttar Pradesh.
The project is a key component of India’s renewable energy build out, enabling efficient evacuation of green power from generation hubs to consumption centres. Once operational, the corridor is expected to significantly enhance grid stability and support power supply to northern India’s industrial and urban clusters.
Japan’s Growing Bet on India
The transaction highlights Japanese banks’ broader strategy to deepen exposure to India, one of the world’s fastest growing major economies, as they seek higher growth and yields outside their domestic market.
Over the past year, Japanese financial institutions have stepped up investments across Indian banking and financial services. Sumitomo Mitsui Financial Group emerged as the largest shareholder in Yes Bank, while Mizuho Financial Group made its biggest India bet by acquiring control of Avendus Capital.
Japanese lenders have also remained key financiers to Adani Group companies, even as some global lenders reassessed exposure following legal scrutiny in the US.
Diversifying Adani Group’s Funding Base
The latest financing comes as the Adani Group looks to diversify its capital structure. The conglomerate is reportedly planning to raise up to $1.5 billion in yen-denominated debt over the next 18 months to reduce reliance on dollar funding amid concerns over currency volatility.
The borrowing could also be refinanced at a later stage through alternative currencies or instruments such as US private placements. Last month, Japan Credit Rating Agency assigned Adani Energy Solutions a BBB+ rating with a stable outlook, providing further comfort to overseas lenders.
Aligned With India’s Climate Goals
The investment aligns with India’s ambition to accelerate clean energy deployment and meet its long-term climate commitments outlined by Prime Minister Narendra Modi at the 2021 Glasgow climate summit.
As India ramps up renewable capacity, large scale transmission projects such as Adani Energy’s HVDC corridor are increasingly seen as critical enablers of the country’s energy transition.
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