Adani Ports and Special Economic Zone, India's largest private port operator, plans a return to the domestic bond market after a 17-month hiatus in what could be its largest-ever rupee denominated debt issue, three merchant bankers said on Wednesday.
The company is set to raise as much as 50 billion rupees ($583.57 million) through the sale of bonds maturing in 15 years and has invited bids from bankers and investors on Thursday, the bankers, who did not want to be named because they are not authorised to speak to media said.
The Adani group did not immediately respond to a Reuters email seeking comments.
If realised, this would not only be the largest bond issue by the company but also the longest in terms of tenor, as the company had raised funds through up to 10-year bonds in the past.
It would also be the first time since early 2024 that the company will tap local bond market for funds. In January 2024, it had raised 2.50 billion rupees each through five-year and 10-year bonds at 8.70% and 8.80% coupons respectively.
The company is likely to offer a coupon of around 7.75% the bankers added, requesting anonymity as they are not authorised to speak to the media.
On May 22, the company's board approved raising up to 60 billion rupees through bond sales.
The notes are rated AAA by Crisil, Icra and Care.
The Adani Group and its 13 offshore investors have been facing an investigation by the Securities and Exchange Board of India (SEBI) since Hindenburg Research in 2023 alleged improper use of tax havens by the group, triggering a stock sell-off.
The group has repeatedly denied wrongdoing, and its shares have since recovered.
In November, U.S. authorities indicted group chairman Gautam Adani and some other executives, alleging they paid bribes to secure Indian power supply contracts and misled U.S. investors during fund raising. The company has denied wrongdoing, and said the allegations are baseless.
($1 = 85.6800 Indian rupees)
(Reuters/Reporting by Dharamraj Dhutia; Editing by Nivedita Bhattacharjee and Savio D'Souza)
