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Was Adani Power charging a country risk premium to Bangladesh?

Author
Zerodha Varsity
Published
Tue 17 Dec 2024
Episode Link
https://side-notes-by-zerodha-varsity.simplecast.com/episodes/ep-19-was-adani-power-charging-a-country-risk-premium-to-bangladesh-bQNArY2h

Risk attracts a premium. A higher price is quoted if there is doubt about a customer's ability to pay up in time. The higher price is because the business wants a premium for assuming the risk. What if there is doubt about a country's ability to pay up? Perhaps that is what Adani Power was concerned about in its power supply deal with Bangladesh.


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