AICTPL Raises $300 Million At The Lowest Coupon Of 3%

Adani International Container Terminal Private Limited (AICTPL) bond issue got 10-times over the subscription.

Adani Group Chairman Gautam Adani. (File Photo/ Getty)

New Delhi: Gautam Adani led Adani International Container Terminal Private Limited (AICTPL), India's largest container terminal by throughput, had raised its first $300 million public US dollar bond issuance on December 21, 2020. AICTPL, an equal joint venture between Adani Ports and Special Economic Zone Limited (APSEZ) and Terminal Investment Limited (TiL), witnessed extensive participation in its bond issuance from marquee real money investors with interests coming from around 220 accounts leading to 10 times oversubscription. The issue of 10 years was priced at par to yield 3%, which is also the lowest coupon achieved by any corporate Indian issuer in the last five years, said a company statement. Mr. Karan Adani, CEO and Whole Time Director of APSEZ, said, "The issuance is in line to the Group's capital management philosophy of re-engineering the capital structure & extending debt maturity inline to the life of the asset. Our relationship with TiL is very important to us and holds the key to our strategy for making Mundra container hub for the region and AICTPL as our flagship terminal. Successful issuance demonstrates the appreciation & acceptance of the level of corporate governance at the private JV level. The first note issuance by any port vertical JV company also paves the way and sets the benchmark for other JVs and Subsidiary companies of the Group to tap the capital market." The investors were attracted by its substantial shareholders, APSEZ & TiL, and their combined business strengths embedded in the company, backed by the issuance's credit quality supported by investment grade rating affirmation by all three international rating agencies, said the statement. Mr. Ammar Kanaan, CEO of TiL, said, "Our relationship with Adani is a classic example of a commercial partnership which is based on core principles of trust, transparency, and respect. AICTPL holds a key position in our overall portfolio of terminals across all continents and is ideally located at Mundra port enabling it to be the port of choice for cargo going to North India. AICTPL's operational performance continues to be amongst the best in the portfolio of terminals owned by us. India is a strategic place for our investment, and we foresee great opportunities going forward." The issuance is in line with Adani Group's philosophy to tap the capital market to re-engineer the capital structure for assets and finance them with debt extending for the project's life. The issuance also fits perfectly into TiL's strategy to diversify and optimize funding sources for its terminal companies worldwide. Barclays, Citigroup, DBS Bank, MUFG, and Standard Chartered were global coordinators, book-runners, and lead managers for the issue. AICTPL, promoters APSEZ is the largest private sector port operator in India, while TiL is the sixth-largest container terminal operator in the world and majority-owned by MSC, the second-largest container shipping liner in the world.