S & P affirms India's long-term credit rating, Adani Green bags record solar power contract

Standard and Poor’s affirmed its rating on India’s long-term foreign and local currency sovereign credit at the lowest investment-grade level. US private equity giant Apollo Global Management parted ways with ICICI Venture in their joint venture. Maruti Suzuki said the challenge was to get supply chains in order as demand for its cars picked up. Here is more on what made news this week.

Business Standard
13th June

  • Standard & Poor's (S & P) affirmed its rating on India's long-term foreign and local currency sovereign credit at the lowest investment grade with a stable outlook, saying the country's economy remains “a long-term outperformer versus peers at a similar level of income”. S&P's outlook come days after Moody’s Investors Service downgraded India's rating by a notch.
  • Tata Sons, the Tata group’s holding firm, might tap international debt markets and issue debentures to local banks to meet its fund requirements for financial year 2020-21, bankers told Business Standard. The size of the international fund offering has not been decided and it is one of the options on the table.
  • US private equity giant Apollo Global Management has parted ways with ICICI Venture in their joint venture AION Capital Partners, which specialises in stressed assets. The two firms will continue with AION fund 1, which had raised $850 million, till their investments are redeemed and the fund winds up in the next few years.
  • Adani Green Energy said it had won a government contract to build 8 gigawatts of photovoltaic (PV) power plant along with a domestic solar panel manufacturing unit at an investment of Rs 45,000 crore. Adani Green said it was world's largest tender for solar power.
  • Maruti Suzuki expects demand for its passenger cars to outstrip supply in June and July as it ramps up production in the coronavirus pandemic. "The big challenge for us is supply chain rather than demand," said R C Bhargava, chairman of India's biggest carmaker. Bhargava said Maruti didn’t have to sell cars at discounts because of demand.
  • Reliance Industries announced 1.16 per cent stake sale in Jio Platforms to Abu Dhabi Investment Authority for Rs 5,683.50 crore ($752 million), accelerating its debt reduction plan. Reliance has now sold just over 21 per cent of Jio Platforms, its digital unit, to seven investors, securing Rs 97,885.65 crore (nearly $13 billion) in less than seven weeks.
  • A Maharashtra government agency has asked GVK to prove it has the finances to complete an international airport in Navi Mumbai after rating firms downgraded group companies. City and Industrial Development Corporation (Cidco) owns 26 per cent in the Rs 17,000-crore project.

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A few links for further reading

Hard path to growth

The signals for the economy are not positive: overall demand is yet to pick up; the share of total exports in India’s GDP is declining, and industrial output pattern remains worrying.

Small savings scheme

Investors breathed a sigh of relief when the government announced that interest rates on these instruments would not be revised for the fourth quarter of the calendar year.

Invest and emigrate

The great Indian dream of settling abroad is achievable if one has a few crores to invest. Rich nations offer a variety of investment options in a quid pro quo arrangement: immigrants get a better quality of life and revenue from them helps these countries’ finances. Wealthy Indians, troubled by polluted cities and the red tape holding up entrepreneurship, may want a quick ticket out of the country. Sanjay Kumar Singh lists a range of options: from a Canadian province’s investor programme to America’s US EB-5 plan.

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