How did Adani Ports secure Rs 5,000 crore via a 15-year non-convertible debenture?
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Synopsis
In a bold financial move, Adani Ports raises Rs 5,000 crore through a 15-year Non-Convertible Debenture, signaling its commitment to long-term growth and innovation. This decisive action not only boosts its capital but also paves the way for ambitious expansion plans in logistics and marine operations.
Key Takeaways
- Adani Ports raised Rs 5,000 crore through a 15-year NCD.
- The debenture has a competitive coupon rate of 7.75%.
- Funds will support long-term growth and operational efficiency.
- APSEZ aims to handle 1 billion tonnes of cargo by FY30.
- Full subscription will extend average debt maturity.
Ahmedabad, May 30 (NationPress) Adani Ports and Special Economic Zone Ltd (APSEZ) announced on Friday that it has successfully raised Rs 5,000 crore through a 15-year Non-Convertible Debenture (NCD).
Supported by APSEZ's robust financials and a ‘AAA/Stable' domestic credit rating, the issue secured a competitive coupon rate of 7.75 percent per annum and was entirely subscribed by the Life Insurance Corporation of India (LIC). The debentures are set to be listed on the BSE.
“This is not just a financing activity; it represents the proactive implementation of a carefully crafted Capital Management Plan for APSEZ, concentrating on maintaining conservative leverage, extending the debt maturity profile, reducing costs, and diversifying funding sources. This plan aims to assist APSEZ in realizing its long-term ambition of becoming the world's largest integrated transport utility,” explained Ashwani Gupta, Whole-time Director and CEO of APSEZ.
Adani Ports aims to handle 1 billion tonnes of cargo by FY30, which is more than double the target for FY25. In addition to its port operations, the company has outlined ambitious initiatives to grow its logistics and marine sectors.
This transaction underscores APSEZ's access to domestic markets for its longest tenure issuance to date, making it one of the longest in the history of Indian capital markets.
The funds will be utilized for a proposed buyback of APSEZ’s US Dollar bonds, pending board approval on May 31, 2025. A full subscription would significantly extend the average debt maturity from 4.8 years to 6.2 years.
With continuously improving debt repayment timelines and reduced capital costs, APSEZ is gaining enhanced access to patient capital and increased liquidity, which are essential for long-term planning and large-scale projects.
Additionally, this provides financial flexibility for inorganic growth opportunities and allows for the reallocation of resources towards innovation, technology upgrades, and improving operational efficiencies.
As the largest port developer and operator in India, Adani Ports manages seven strategically located ports and terminals on the west coast and eight on the east coast, accounting for 27 percent of the country's total port volumes.
Point of View
This move by Adani Ports reflects a proactive approach towards financial management and expansion strategy. The funding not only strengthens their market position but also contributes to the overall growth of India's logistics and infrastructure sectors.
NationPress
22/07/2025
Frequently Asked Questions
What is the purpose of the Rs 5,000 crore raised by Adani Ports?
The funds will be used for various initiatives, including a proposed buyback of US Dollar bonds, enhancing financial flexibility for long-term projects.
Who fully subscribed to the Non-Convertible Debenture?
The entire issue was fully subscribed by the Life Insurance Corporation of India (LIC).
What is the significance of the AAA rating for Adani Ports?
The AAA rating indicates strong financial health, allowing the company to secure competitive rates for its funding.
How does this debenture affect Adani Ports' debt maturity?
This issuance will extend the average debt maturity from 4.8 years to 6.2 years, improving financial stability.
What are the long-term goals of Adani Ports?
Adani Ports aims to handle 1 billion tonnes of cargo by FY30 and expand its logistics and marine operations significantly.
