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Thursday, July 25, 2024

Adani Ports Plans to Raise INR 5 Billion Through Bond Market after More Than Two Years

Adani Ports and Special Economic Zone, India’s largest private port operator, is set to enter the bond market for the first time since October 2021. The company aims to raise funds totaling INR 5 billion ($60.08 million) through two bonds, with one maturing in five years and the other in ten years, according to sources from three bankers.

Following an invitation for bids from bankers and investors on Monday, the announcement comes a day after the Supreme Court of India ruled that the Adani Group, including Adani Ports, does not require additional investigations beyond the ongoing scrutiny by market regulators. This decision provides significant relief for the conglomerate, which faced allegations from a U.S. short-seller.

Both bonds from Adani Ports have an issue size of INR 2.5 billion, offering an 8.70% coupon on the five-year maturity and an 8.80% coupon on the ten-year maturity. These bonds are rated AA+ by India Ratings and ICRA, with Trust Investment Advisors serving as the sole arranger for the issue.

In December, it was reported that Adani Ports was considering raising funds up to INR 10 billion from the domestic bond market in the final quarter of the financial year. The company, operating 13 ports and terminals in the country, had previously announced its intention to raise up to INR 50 billion by issuing bonds through private placements in one or more tranches, primarily aimed at refinancing existing debt. Adani Ports last accessed the bond market in October 2021, raising INR 10 billion at a coupon of 6.25%.

Adani Enterprises, including its subsidiaries Adani Ports and SEZ, Adani Green Energy, Adani Power, airports, and roads within Adani Enterprises, may also consider tapping the domestic bond market in the near future, as indicated by Chief Financial Officer Jugeshinder Singh. Adani Enterprises had previously raised nearly INR 20 billion through two unlisted bond issuances in July and October of the current year, marking its return to the local corporate bond market after a hiatus since January.

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