Explorer

APSEZ Becomes India's First Infra Firm To Raise Funds For 20-years From Global Markets

The company attributes the achievement on the strength of the company's unique business model and strong fundamentals and APSEZ's commitment to ESG and the UN Sustainability Development Goals.

Mumbai: Billionaire Gautam Adani led Adani Ports and Special Economic Zone Ltd (APSEZ), successfully priced a  $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, making it the third issuer of long tenor bonds after energy utilities Adani Green Energy Ltd (AGEL) and Adani Transmission Ltd (ATL) within the Adani Group.

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

ALSO READ: Vijay Mallya Declared Bankrupt By UK Court; Indian Banks Inch Closer To Debt Recovery

Commenting on the transaction, 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 mobilize 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."

This issuance establishes the Adani Group as India's leading issuer with the ability to access international capital markets across all market cycles as APSEZ, the transport and logistics arm of the diversified Adani Group, is the only infrastructure company in India to raise 20 years of money from global markets successfully.

The company attributes the achievement on the strength of the company's unique business model and strong fundamentals and APSEZ's commitment to ESG and the UN Sustainability Development Goals.

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%.

Following this issuance, APSEZ has raised the national bar for issuing long tenor bonds and has established a robust financial foundation that will help support the development of significant infrastructure assets.

The Adani Group's growth model of building and developing world-class infrastructure assets rapidly and after that accessing global financial markets is unique and unreplicated in India's business landscape.

APSEZ shares on BSE were trading down marginally at Rs 676.7 in a flat Mumbai market on Tuesday at noon, valuing the company at Rs 138165 crore.

View More
Advertisement
Advertisement
25°C
New Delhi
Rain: 100mm
Humidity: 97%
Wind: WNW 47km/h
See Today's Weather
powered by
Accu Weather
Advertisement

Top Headlines

Maharashtra Elections: With 50 Rebels In Fray, Can Mahayuti And Maha Vikas Aghadi Contain The Dissent?
Maharashtra Elections: With 50 Rebels In Fray, Can Mahayuti And Maha Vikas Aghadi Contain The Dissent?
India Confirms Meeting Between India, Canada Intel Officials, But Maintains No Evidence Shared On Nijjar Case
India Confirms Meeting Between India, Canada Intel Officials, But Maintains No Evidence Shared On Nijjar Case
Jharkhand Elections: INDIA Bloc Arrives At Seat-Sharing Agreement For Assembly Polls, Friendly Fight In 3 Seats
INDIA Bloc Arrives At Seat-Sharing Agreement For Jharkhand Polls, Friendly Fight In 3 Seats
Pawar Family Hosts Separate Diwali Events For 1st Time As Ajit, Sharad Gear Up For Maharashtra Polls
Pawar Power Split: Pawar Family Hosts Two Diwalis For 1st Time As Ajit, Sharad Gear Up For Polls
Advertisement
ABP Premium

Videos

Maharashtra Election: If Numbers Are Needed, Who Will You Choose? Devendra Fadnavis Makes a 'Prediction'Maharashtra Election: Listen to Raj Thackeray's Take On Who Will Be Maharashtra's Next CM | Raj Thackeray ExclusiveMaharashtra Election: Ajit Pawar Speaks Out on Allegations of Collusion with Sharad Pawar | Ajit Pawar ExclusiveChirag Paswan Exclusive Interview: Responds with Laughter on Marriage, Uncle, Nitish & PM Modi | ABP LIVE

Photo Gallery

Embed widget