Adani Ports Raises Largest Ever Domestic Bond Worth Rs 5,000 crore via 15-Year NCD

Adani Ports and Special Economic Zone Ltd (APSEZ) has raised Rs 5,000 crore through a Non-Convertible Debenture (NCD) with a 15-year term. This successful financial endeavor, underpinned by APSEZ's robust fiscal health and awarded a 'AAA/Stable' rating by domestic credit agencies, attracted a keen interest rate of 7.75% per annum. The entirety of this offering was acquired by LIC, and it is destined for listing on the Bombay Stock Exchange (BSE).

The infusion of funds through this NCD issuance is earmarked for the strategic buyback of APSEZ's US Dollar bonds, contingent upon approval by the board scheduled for 31 May 2025. This move not only underscores APSEZ's adept navigation of domestic capital markets but also marks this transaction as its most extended tenure issuance to date, setting a precedent in the annals of Indian capital market history. By achieving complete subscription, APSEZ is poised to protract its average debt maturity from 4.8 years to 6.2 years, thereby reinforcing its debt maturity landscape significantly.

"This isn't merely a financing exercise; it's a proactive execution of a meticulously developed Capital Management Plan for APSEZ, focused on maintaining conservative leverage, extending the debt maturity profile, lowering cost, and diversifying funding sources. This plan is designed to support APSEZ with its long-term vision to become the world's largest integrated transport utility," expressed Mr. Ashwani Gupta, Whole-time Director & CEO of APSEZ. The company's ambition to handle 1 billion tonnes of cargo by the financial year 2030, more than doubling its FY25 projections, aligns with its broader vision. APSEZ is also keen on enlarging its logistical and marine ventures, illustrating a comprehensive growth strategy.

APSEZ's strategic financial maneuvering ensures an enhanced timeline for debt repayment and a reduction in capital costs, thereby facilitating access to sustained capital and bolstering liquidity - essential attributes for long-range planning and executing mega projects. This financial dexterity also accommodates inorganic growth opportunities, paving the way for innovations, technological advancements, and operational optimizations.

About Adani Ports and Special Economic Zone Ltd (APSEZ)

A key player in the Adani Group's global portfolio, APSEZ has evolved from a mere port operator to a fully-integrated transport utility, offering comprehensive end-to-end services from port to customer gates. It stands as India's most extensive port developer and operator, managing 7 ports along the west coast and 8 on the east coast, accounting for 27% of national port volumes. This extensive reach enables the handling of a considerable cargo volume from coastal and inland regions. APSEZ's global footprint includes the development of a transshipment port in Colombo, Sri Lanka, along with operational activities at Haifa Port in Israel and Container Terminal 2 at Dar Es Salaam Port, Tanzania, further solidifying its international standing. The company's "Ports to Logistics Platform," which integrates port facilities with logistical solutions like multimodal logistics parks, Grade A warehouses, and industrial economic zones, positions APSEZ advantageously as global supply chains undergo significant restructuring. With strategic capital management and financial prudence, APSEZ is firmly on the path to realizing its vision of becoming the world's largest ports and logistics platform in the forthcoming decade.