Updated 30 May 2025 at 15:59 IST
Adani Ports Raises ₹5,000 Cr via 15-Year NCD Fully Subscribed by LIC
The proceeds from the issue are earmarked to fund a proposed buyback of APSEZ’s U.S. dollar bonds, subject to board approval on May 31.
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Adani Ports and Special Economic Zone Ltd (APSEZ), India’s largest integrated transport utility, has successfully raised ₹5,000 crore through a 15-year Non-Convertible Debenture (NCD), marking one of the longest-tenure debt issuances in the history of Indian capital markets.
The debt instrument, carrying a competitive coupon rate of 7.75% per annum, was fully subscribed by Life Insurance Corporation of India (LIC), underscoring investor confidence in APSEZ’s robust financial profile and 'AAA/Stable' domestic credit rating. The NCDs will be listed on the Bombay Stock Exchange (BSE).
The proceeds from the issue are earmarked to fund a proposed buyback of APSEZ’s U.S. dollar bonds, subject to board approval on May 31. A full execution of this plan would extend APSEZ’s average debt maturity from 4.8 years to 6.2 years, enhancing long-term financial stability.
“This isn't merely a financing exercise; it's a proactive execution of a meticulously developed Capital Management Plan,” said Ashwani Gupta, Whole-time Director & CEO, APSEZ. “The plan is focused on maintaining conservative leverage, extending the debt maturity profile, lowering the cost of capital, and diversifying funding sources. It is designed to support our long-term vision to become the world’s largest integrated transport utility.”
The transaction demonstrates APSEZ’s continued access to long-term domestic capital at attractive pricing, strengthening its debt maturity profile and liquidity position. It also reinforces the company’s financial flexibility to pursue inorganic growth, technology upgrades, and operational enhancements.
With ambitions to more than double its cargo handling to 1 billion tonnes by FY30, APSEZ is aggressively expanding not just its port operations, but also its logistics and marine services businesses. The firm believes its improved debt profile will provide a strong foundation for capital-intensive projects and strategic opportunities.
“Access to patient capital is crucial for our long-term planning and infrastructure build-out,” Gupta added. “This funding gives us the room to innovate, explore strategic acquisitions, and invest in the technologies and efficiencies that will power our next phase of growth.”
The company’s capital management strategy has garnered praise from analysts for its proactive approach and investor-friendly signaling amid a volatile global debt environment.
Published 30 May 2025 at 15:59 IST