Adani Ports raises ₹5,000 crore through 15-year NCDs.
Adani Ports has announced its ambitious goal of handling 1 billion tonnes of cargo annually by FY30, aiming to strengthen its position as a leading port operator in India.
Adani Ports Raises ₹5,000 Crore Through Non-Convertible Debenture
Introduction to APSEZ’s Financing Move
Adani Ports and Special Economic Zone Ltd. (APSEZ) has accomplished a significant milestone by securing ₹5,000 crore via a 15-year non-convertible debenture (NCD). This move not only highlights their robust financial status but also positions the company for substantial future growth.
Details of the Debenture Issuance
The successful issuance of the NCD, featuring a competitive coupon rate of 7.75% per annum, was fully subscribed by the Life Insurance Corporation of India (LIC). It is significant to note that the debentures are set to be listed on the Bombay Stock Exchange (BSE), showcasing APSEZ’s strong market presence.
Strategic Plans for Growth and Innovation
As stated by Ashwani Gupta, Whole-Time Director and CEO of APSEZ, this initiative is more than just financing; it is a key aspect of their capital management strategy aimed at reducing debt costs and diversifying funding sources. With a target of handling 1 billion tonnes of cargo by FY30, APSEZ is positioned to double its FY25 targets. Beyond port operations, the company is also focusing on expanding its logistics and marine divisions, demonstrating a commitment to innovation and operational efficiency.
In summary, the funds raised through this issuance are expected to support the buyback of US dollar bonds pending board approval, thereby extending the average debt maturity significantly from 4.8 years to 6.2 years. This strategic financial maneuver will enhance APSEZ’s capacity for long-term planning and contribute to their vision of becoming the world’s largest integrated transport utility.