Adani Ports gets ratings for planned bond issue

Adani Ports and Special Economic Zone have achieved a crucial milestone in its return to the corporate bond market by securing favourable ratings for its upcoming debt issuance. 

ICRA has granted an AA+ rating to bonds worth Rs 10,000 crore ($1.20 billion), while India Ratings and Research has assigned an AA+ rating to bonds worth Rs 5,000 crore.

The ratings consider Adani Ports' robust business profile, with ICRA stressing the company's strengths. India Ratings, on the other hand, maintains a consolidated perspective, considering both the company and its subsidiaries.

In December, Reuters reported that Adani Ports is contemplating raising up to Rs 1,000 crore from the domestic bond market in the final quarter of the financial year. This marks the company's first bond issuance since October 2021.

In addition to the planned public bond issue, the company had earlier announced its intention to raise up to Rs 5,000 crore through private placements.

Adani Ports, which manages 13 ports and terminals in India, plans to utilise a crucial portion of the funds raised for refinancing existing debt. The board is scheduled to convene on January 3 to approve the bond issue.

Having last accessed the bond market in October 2021, raising Rs 1,000 crore at a 6.25 per cent coupon rate, Adani Ports is poised for a return.

Adani Group CFO Jugeshinder Singh had previously indicated that various companies within the Adani Group, such as Adani Green Energy, Adani Power, and segments within Adani Enterprises, including airports and roads, may also explore the domestic bond market in the near future. 

In August, Reuters had reported that Adani Airport Holdings and Adani Ports could be the first to tap the market within the group.

(With Reuters Inputs)