Adani Ports Secures Rs 5,000 Crore Via 15-Year NCD Backed by LIC

• Adani Ports and SEZ secured Rs 5,000 crore through a 15-year NCD fully subscribed by LIC at a 7.75 percent annual coupon rate.
• The funds will support a planned US Dollar bond repurchase by extending average debt maturity from 4.8 to 6.2 years.
• CEO Ashwani Gupta said the move aligns with APSEZ’s long-term vision to become the world’s largest integrated transport utility.

Adani Ports and Special Economic Zone Limited (APSEZ) announced on Friday that it has secured Rs 5,000 crore via a 15-year Non-Convertible Debenture (NCD). The NCD issuance was completely subscribed by the Life Insurance Corporation of India (LIC).

 “Backed by APSEZ’s strong financials and a ‘AAA/Stable’ domestic credit rating, the issue locked in a competitive coupon rate of 7.75 percent per annum and was fully subscribed by LIC. The debentures will be listed on the BSE. The issue shows APSEZ’s deep access to long-term capital from diversified sources at attractive pricing and significantly enhances APSEZ’s debt maturity profile. The transaction highlights APSEZ access to domestic markets for its longest tenure issuance till date, and one of the longest in Indian capital markets history”, according to Adani Ports and Special Economic Zone Limited (APSEZ).

The funds raised will be used to support a planned repurchase of APSEZ’s US Dollar bonds, subject to board approval on May 31, 2025. A complete subscription would substantially increase the average debt maturity from 4.8 years to 6.2 years.

Whole-time Director & CEO, APSEZ Ashwani Gupta said,  “This isn’t merely a financing exercise; it’s a proactive execution of a meticulously developed Capital Management Plan for APSEZ, focused on maintaining conservative leverage, extending the debt maturity profile, lowering cost, and diversifying funding sources. This plan is designed to support APSEZ with its long-term vision to become the world’s largest integrated transport utility”.

APSEZ aims to manage 1 billion tonnes of cargo by FY30, which is more than double the amount expected by FY25. In addition to its port activities, the company has ambitious plans to grow its logistics and marine sectors.

With steadily improving timelines for debt repayment and lower capital costs, APSEZ is able to access patient capital and increased liquidity, which are essential for long-term strategies and large projects. Furthermore, this also provides financial flexibility for pursuing inorganic growth opportunities and allows for the reallocation of resources toward innovation, technology enhancements, and improving operational efficiencies, as stated by the company.

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