Adani Ports Mulls Up to 10 Billion Rupees Debt Issue by March

December 14, 2023

© Yasar / Adobe Stock
© Yasar / Adobe Stock

India's Adani Ports and Special Economic Zone APSE.NS is mulling a fundraise of up to 10 billion rupees ($120 million) from a domestic rupee bond sale, its first since 2021, two bankers aware of the discussions said on Thursday.

The country's largest private port operator is likely to tap the market before March, they said.

"The company has a board approval for fundraising but ratings and other formalities are pending, which are expected to start soon," one of the bankers said.

The bankers spoke on a condition of anonymity as they are not authorised to speak to the media. Adani Group did not respond to a Reuters' request for comment.

Earlier this week, Adani Ports said it will raise up to 50 billion rupees ($600.18 million) by issuing bonds through private placements in one or more tranches.

The company, which operates 13 ports and terminals in the country said a majority of the funds issued will be used for refinancing of existing debt.

The fundraise is being considered at a time when Adani Ports is said to be in early talks to acquire real-estate conglomerate Shapoorji Pallonji Group's Gopalpur port in Odisha for about 11 billion rupees-12 billion rupees, as per an Economic Times report last week.

Among Adani Group companies, Adani Ports and SEZ, Adani Green Energy, Adani Power and within Adani Enterprises, airports and roads may tap the domestic bond market in near future, Chief Financial Officer Jugeshinder Singh had said earlier this month.

Singh, however, did not give any further details on quantum or timeline. The group may also look at public issue of bonds from February, he had said.

Adani Enterprises has raised nearly 20 billion rupees through two unlisted bond issuances this year in July and October.

The company returned to local corporate bond market in July for the first time since January when a U.S.-based short-seller's scathing report sparked a rout in the group's securities.

Adani Ports last tapped the bond market in October 2021, where it had raised 10 billion rupees at a coupon of 6.25%.

In August, Reuters had reported that Adani Airport Holdings and Adani Ports and Special Economic Zone may tap the market first, with offerings of around 10-15 billion rupees.


($1 = 83.3090 Indian rupees)

(Reuters - Reporting by Bhakti Tambe; Editing by Nivedita Bhattacharjee and Mrigank Dhaniwala)

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