In a bid to refinance its high-cost borrowings and fund upcoming projects, Indian billionaire Gautam Adani group is planning to raise at least USD 10 billion in additional debt over the coming year, according to sources familiar with the plans.

The Adani Group intends to raise up to USD 6 billion using multiple instruments, including foreign currency debt and green bonds, to replace its existing high-interest debt with lower-cost borrowings and to use the remaining funds for project financing, one of the people said, asking to remain anonymous because the information is private.  The effort could lick up as early as the ongoing December quarter, the people said.

The action aims to lessen the total repayment load on the ports-to-power firm, which has drawn attention as Asia's richest person pursues a series of ambitious acquisitions to diversify into industries including renewable energy, internet services, and media.

Despite global interest rates rising, the company is optimistic about obtaining lower-cost loans because of its expanded asset base, according to the sources. However, they warned that the timing of this fundraising campaign can alter depending on conditions in the world economy.

The Singaporean GIC Pte and Temasek Holdings Pte are among the investors in early discussions with Adani and his family to finance at least USD 10 billion to bankroll the conglomerate's growth into clean energy and ports, according to an earlier story in the Indian newspaper Mint. The Adani Group has not made any public remarks regarding this report.

Concerns about the group's high leverage ratios have been raised by Adani's rapid expansion, which has made the business the second-largest cement manufacturer in the area after its USD 6.5 billion purchase of Holcim Ltd.'s Indian divisions in May. Even though the corporation has long maintained its debt levels as "healthy," its move to lower borrowing costs highlights the necessity for it to avoid becoming overextended or being seen as such.

For its first public offering last September, Adani Green Energy Ltd. experienced strong demand, collecting orders totaling more than USD 3.5 billion for a USD 750 million issuances. However, since then, the macroeconomic headwinds have gotten considerably worse.

According to a Bloomberg index of Indian corporate and quasi-sovereign dollar-denominated bonds, which includes Adani firms, dollar-denominated financing costs have skyrocketed over the previous two months. Since the global financial crisis, the relative cost of replacing old debt with new is presently at its greatest level.

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