Key facts
- JBIC, SMBC, and other lenders will provide up to 80 billion yen ($492 million) for India's power grid development.
- Adani Energy Solutions secured a $750 million loan from MUFG Bank and SMBC for a renewable energy transmission project.
- Power Grid Corporation of India Limited secured a $200 million green loan from SMBC, with an option for an additional $150 million.
- The Adani project aims to connect Rajasthan and Uttar Pradesh with a 6,000 MW HVDC network for renewable energy evacuation.
- The Power Grid loan will support infrastructure for integrating renewable energy into the national grid.
- Adani Energy Solutions' financing is classified as a Green Loan under its sustainable debt framework.
Japanese financial institutions, including the Japan Bank of International Cooperation (JBIC) and Sumitomo Mitsui Banking Corporation (SMBC), are set to provide significant financing for India's power grid development. The total loan amount is expected to reach up to 80 billion yen, approximately $492 million, aimed at strengthening New Delhi's energy security and bolstering its renewable energy infrastructure.
In a related development, Adani Energy Solutions Limited has secured a substantial long-term financing package, reportedly totaling $750 million, from a consortium of Japanese banks led by MUFG Bank and SMBC. This funding is designated for a major renewable energy transmission project connecting Rajasthan and Uttar Pradesh, designed to evacuate 6,000 MW of green energy. The project, a 950-kilometer high-voltage direct current (HVDC) network, is scheduled for commissioning by 2029 and will utilize advanced technology from Hitachi Energy in collaboration with Bharat Heavy Electricals Limited (BHEL).
Furthermore, Power Grid Corporation of India Limited, a state-owned enterprise, has finalized a green loan agreement with SMBC for $200 million, with an option to increase it by an additional $150 million. This facility is intended to support critical infrastructure for integrating renewable energy sources into the national grid, enhancing its reliability and promoting sustainable development. The financing for Adani Energy Solutions has been structured under its sustainable debt framework, classifying it as a Green Loan. The company's credit rating was recently upgraded to BBB+ by the Japanese agency JCR, aligning with India's sovereign rating.