Adani Ports raises $750 million from global investors through bonds

Adani Ports and Special Economic Zone (APSEZ) on Tuesday said it has raised $750 million through senior unsecured USD notes issuance of two tranches of 20 years and 10.5 years.
 
While the 20-year tranche was priced at a fixed coupon of 5 per cent, the 10.5-years tranche was priced at 3.8 per cent.
 
"The issuances were closed on July 26th, 2021 and was oversubscribed by over 3 times. APSEZ has continued to receive exceedingly strong participation (for its successive bond offerings) from its high-quality real money investors across all geographies," the Adani Group company said in a release.
 
The larges port operator and developer in the country said that it is the only infrastructure company in India to successfully raise 20 years money from international markets. The achievement "underscores the strength of the company's unique business model and strong fundamentals as well as APSEZ's commitment to ESG and the UN Sustainability Development Goals," the company said.

Also Read: FMCG sector revenue to double to 10-12% this fiscal: CRISIL
 
"Having issued the long tenor bond in developed markets, APSEZ has elongated the debt maturity to over 7 years from 6 years...This issuance has also reconfigured the ratio of APSEZ's debt from overseas investors from 69 per cent to 73 per cent," it said.
 
The company's natural hedge through its foreign currency earnings allows it to manage its foreign currency exposure, APSEZ said.
 
"This issuance reflects the confidence international financial markets have in the fundamentals of the Adani Group's business model and its ability to execute. It further demonstrates our ability to mobilise global resources commensurate with our long asset life and is a part of our capital management program to lock lower interest rates over an extended tenor and extend debt maturity," APSEZ CEO Karan Adani said.
 
The reduced cost of capital will translate into greater capital efficiency as well as enhanced shareholder returns, he added.

Also Read: 'No one has approached me': Ratan Tata on Chandrasekaran's second term