Adani Ports Raises ₹50 Billion via 15-Year Bonds in Landmark Debt Issuance

Image Source: Indira Securities

Adani Ports and Special Economic Zone Ltd (APSEZ) has successfully raised ₹50 billion ($585.33 million) through a 15-year non-convertible debenture (NCD) issuance, marking its largest rupee-denominated bond sale. The bonds were fully subscribed by Life Insurance Corporation of India (LIC), reinforcing investor confidence in Adani Group’s financial stability.

Debt Issuance Details:

₹50 billion raised via 15-year bonds at a 7.75% annual coupon rate.
LIC fully subscribed to the issuance, reflecting strong institutional demand.

Market Return:

This marks Adani Ports’ first domestic bond issuance since January 2024, following a 17-month hiatus.
The company had previously raised ₹2.5 billion each via five- and 10-year bonds at 8.70% and 8.80% coupon rates, respectively.

Strategic Financing:

The funds will be used for expansion, refinancing existing debt, and infrastructure development.
The bonds were issued at the lowest spread over government bond yields in seven years.

Credit Ratings & Investor Sentiment:

The issuance received a AAA rating from Crisil and Care, indicating high creditworthiness.
Analysts expect more Adani Group companies to tap local debt markets, given declining yields and surplus liquidity.

Stock & Market Impact:

Adani Ports’ market capitalization surged, reflecting positive investor sentiment.
The company’s outstanding bonds now total ₹62.5 billion, with LIC holding ₹54 billion worth of Adani Ports debt.
Adani Ports’ successful bond issuance signals strong institutional backing, positioning the company for continued growth in India’s port and logistics sector.

Source: MSN, Telegraph India, Live Mint, Business Standard, Times of India