Adani Ports successfully raises 20 years money from international markets
Adani Ports & Special Economic Zone priced a US$ 750 million senior unsecured US$ notes issue with 20-year and 10.5-year tranches with fixed coupons of 5.0% and 3.8%, respectively. The issuances were concluded on July 26th, 2021 and were more than three times oversubscribed. APSEZ has continued to attract excellent participation from its high-quality real money investors across all regions (for its consecutive bond issues).
With this issuance, the Adani Group becomes India's top issuer, able to access foreign capital markets at all times of the market cycle. APSEZ is India's only infrastructure firm to raise money from international markets for a period of 20 years, demonstrating the soundness of the company's unique business model and solid foundations, as well as APSEZ's commitment to ESG (Environmental, social, and corporate governance) and the UN Sustainable Development Goals. After energy utilities Adani Green Energy ('AGEL') and Adani Transmission ('ATL'), APSEZ is the third issuer of long tenor bonds in the Adani portfolio.
APSEZ has extended the debt term to nearly 7 years from 6 years after issuing the long tenor bond in developed markets. APSEZ can manage its foreign currency risk because to its natural hedging of foreign currency revenues. The debt-to-equity ratio of APSEZ's debt from overseas investors has shifted from 69% to 73% because of this issue.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.