Adani Ports and Special Economic Zone (APSEZ) becomes India’s first infrastructure company to raise 20-year money from international markets
- Adani Ports and Special Economic Zone (APSEZ) raises USD 750 Mn. of dual tranche 10.5-year and 20-year unsecured bonds in global capital markets
- Issuance increases the average life of long-term debt to over 7 years and reconfigures the ratio of APSEZ’s debt from overseas investors from 69% to 73%
- Marquee investors participated in APSEZ’s senior unsecured long tenor notes. Strong overall demand with book size of around USD 2.5 billion
- APSEZ India’s first infrastructure company (and third from the Adani Group) to raise fixed coupon USD bonds with tenor of 20 years
Ahmedabad, July 27, 2021: Adani Ports and Special Economic Zone Ltd (‘APSEZ’), the transport and logistics arm of the diversified Adani portfolio, successfully priced a USD 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 was 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.
This issuance establishes the Adani Group as India’s leading issuer with the ability to access international capital markets across all market cycles. APSEZ is the only infrastructure company in India to successfully raise 20 years money from international markets, an achievement that underscores the strength of the company’s unique business model and strong fundamentals as well as APSEZ’s commitment to ESG and the UN Sustainability Development Goals. 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 elongated 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%.
Mr. Karan Adani, CEO and Whole Time Director of APSEZ, said, “APSEZ is proud of being India’s first infrastructure company to raise USD 750 Mn. of dual tranche 10.5-year and 20-year unsecured bonds in global capital markets. 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.”
Following this issuance, APSEZ has raised the national bar for issuing long tenor bonds and has established a robust financial foundation that will help continue support the development of large infrastructure assets. The Adani Group’s growth model of building and developing world-class infrastructure assets rapidly and thereafter accessing global financial markets is unique and unreplicated in India’s business landscape.
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., a part of globally diversified Adani Group has evolved from a port company to Ports & Logistics Platform for India. It 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— represent 24% of the country’s total port capacity, handling vast amounts of cargo from both coastal areas and the vast hinterland. The company is also developing a transhipment port at Vizhinjam, Kerala. Our “Ports to Logistics Platform” comprising our port facilities, integrated logistics capabilities, and industrial economic zones, puts us in a unique position to benefit as India stands to benefit from an impending overhaul in global supply chains. Our vision is to be the largest ports and logistics platform in the world in the next decade. With a vision to turn carbon neutral by 2025, APSEZ was the first Indian port and third in the world to sign up for Science Based Targets Initiative (SBTi) committing to emission reduction targets to control global warming at 1.5°C above pre-industrial levels.
