Side Notes by Zerodha Varsity

Was Adani Power charging a country risk premium to Bangladesh?

Episode Notes

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.