APSEZ raises US $750 mn from international markets
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APSEZ raises US $750 mn from international markets

This issuance has also reconfigured the ratio of APSEZ’s debt from overseas investors from 69% to 73%

  • By ICN Bureau | July 28, 2021

Adani Ports and Special Economic Zone (APSEZ), the transport and logistics arm of the diversified Adani portfolio, has become India’s first infrastructure company to raise US $750 million senior unsecured USD notes issuance with 20 years and 10.5 years tranches at a fixed coupon of 5.0% and 3.8% respectively.

The issuances were closed on July 26th, 2021 and were oversubscribed by over 3 times. APSEZ has continued to receive exceedingly strong participation (for its successive bond offerings) from its high-quality real money investors across all geographies.

Within the Adani portfolio, APSEZ is the third issuer of long tenor bonds after energy utilities Adani Green Energy Ltd (AGEL) and Adani Transmission Ltd (ATL).

Having issued the long tenor bond in developed markets, APSEZ has lengthened the debt maturity to over 7 years from 6 years. APSEZ’s natural hedge through its foreign currency earnings allows the company to manage its foreign currency exposure. This issuance has also reconfigured the ratio of APSEZ’s debt from overseas investors from 69% to 73%.

Karan Adani, CEO and Whole Time Director of APSEZ said, “This issuance reflects the confidence international financial markets have in the fundamentals of the Adani Group’s business model and its ability to execute. It further demonstrates our ability to mobilise global resources commensurate with our long asset life and is a part of our capital management program to lock lower interest rates over an extended tenor and extend debt maturity. The reduced cost of capital will translate into greater capital efficiency as well as enhanced shareholder returns.”

The JLMs to the transaction were Axis Bank, Barclays, Citigroup, DBS Bank, Emirates NBD, JP Morgan, Merrill Lynch, Mizuho Securities, MUFG Securities, SMBC Nikko, and Standard Chartered Bank.

Adani Ports and Special Economic Zone Ltd is the largest port developer and operator in India with 12 strategically located ports and terminals — Mundra, Dahej, Tuna and Hazira in Gujarat; Dhamra in Odisha; Mormugao in Goa; Visakhapatnam and Krishnapatnam in Andhra Pradesh; Dighi in Maharashtra; and Kattupalli and Ennore in Chennai — representing 24% of the country's total port capacity, handling vast amounts of cargo from both coastal areas and the vast hinterland.

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