India’s Adani Group is in discussions with a Middle East-based sovereign wealth fund (SWF) to raise up to $1 billion for its airports business, according to a report by Economic Times. The capital raise will be carried out in two phases, with the first round of funds expected to be secured by the end of the fourth quarter of 2024.
The specific sovereign fund involved has not yet been disclosed, but the Adani Group has a history of collaborating with prominent Gulf-based SWFs such as the Abu Dhabi Investment Authority (ADIA) and the Qatar Investment Authority (QIA). Both funds have previously invested in Adani’s infrastructure ventures, including its energy solutions arm.
Airport Expansion and Funding Strategy
The fundraising comes as Adani Airport Holdings, the group’s airport division, looks to expand its footprint in India. Currently, Adani operates seven airports across the country and is in the process of constructing another major airport in Navi Mumbai, with a planned investment of $21 billion over the next decade.
The $1 billion capital raise is set to bolster Adani’s airport infrastructure and finance its ambitious expansion plans. Additionally, the group has launched a qualified institutional placement (QIP) to raise $500 million, which may increase to $1 billion through a greenshoe option depending on investor demand. Proceeds from the QIP will be used for developing airport facilities, financing capital expenditures, and repaying part of Adani’s debt.
Broader Regional Partnerships
The Adani Group’s strategic focus on the Middle East is evident from its previous partnerships and recent moves in the region. In July, reports indicated that both ADIA and QIA invested in Adani Energy Solutions’ share sale, which raised up to $1 billion.
Further strengthening its presence in the Middle East, Adani Power incorporated a wholly owned subsidiary in Abu Dhabi in August. The new subsidiary will serve as an investment holding company, focusing on power, infrastructure, and related sectors in the region, signaling the group’s long-term commitment to its expansion strategy in the Gulf.
