Mumbai: Adani Ports and Special Economic Zone Limited (APSEZ), led by billionaire Gautam Adani, successfully priced $750 million senior unsecured USD note issuance with 20-year and 10.5-year tranches at fixed coupons of 5.0% and 3.8%, respectively , making it the third issuer. The long-term bonds are followed by energy utilities Adani Green Energy Limited (AGEL) and Adani Transmission Limited (ATL) within the Adani Group.
The issuance was closed on July 26, 2021, and was oversubscribed more than three times, a company statement said, adding that APSEZ has been “received” from its high-quality real money investors across all geographies. continues to receive extremely strong participation (for its successive bond offerings) .
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Commenting on the transaction, Mr. Karan Adani, CEO and Whole-time Director, APSEZ said, “APSEZ is proud to be the first infrastructure company in India, which has launched 750 of double tranche of 10.5-year and 20-year unsecured bonds. million. Global Capital Markets. The issue reflects the Adani Group’s belief in the fundamentals of the business model of the International Financial Markets and its ability to execute. It will further enhance our ability to mobilize global resources commensurate with our long asset life. Demonstrates capability and is part of our capital management program to lock in lower interest rates and extend debt maturities over an extended period. Lower cost of capital will translate into greater capital efficiency as well as better shareholder returns. “
The issue establishes Adani Group as India’s leading issuer with the potential to reach international capital markets across all market cycles as APSEZ, the transport and logistics arm of the diversified Adani Group, is the only infrastructure company in India to have Has raised money for 20 years. successfully in global markets.
The Company attributes the achievement to the strength of the Company’s unique business model and strong fundamentals and APSEZ’s commitment to the ESG and the United Nations Sustainability Development Goals.
After issuing longer duration bonds in developed markets, APSEZ has increased the debt maturity from 6 years to 7 years. Natural hedge through APSEZ’s forex earnings allows the company to manage its forex risk. The issue has reconfigured the ratio of APSEZ’s debt to foreign investors from 69% to 73%.
Following this issuance, APSEZ has raised the national bar for long-term bond issuance and has established a strong financial foundation that will help support the development of critical infrastructure assets.
The Adani Group’s growth model of building and developing world-class infrastructure assets rapidly and then access to global financial markets is unparalleled and has not been replicated in India’s business landscape.
Shares of APSEZ were trading marginally lower at Rs 676.7 in a flat Mumbai market at noon on BSE on Tuesday, taking the company’s value to Rs 138165 crore.
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