Extends debt maturity profile, proceeds to be used for bond buybacks*
Editor Synopsis
- APSEZ Secures INR 5,000 Cr via 15-year Non-Convertible Debentures (NCDs) from Life Insurance
Corporation of India (LIC)
- NCDs locked in at a competitive 7.75% p.a. coupon rate; issued at par
- Average Debt Maturity extends to 6.2 years from 4.8 years, a direct outcome of APSEZ’s
‘Capital Management Plan’
- Demonstrates APSEZ’s access to diversified sources of financing and access to tenor in
domestic markets
- APSEZ maintains it ‘AAA/Stable’ rating from all top domestic rating agencies—CRISIL, ICRA,
CARE, and India Ratings
Ahmedabad, 30 May 2025: Adani Ports and Special Economic Zone Ltd (APSEZ),
India’s largest integrated transport utility, has successfully raised INR 5,000 crore through a
15-year Non-Convertible Debenture (NCD). Backed by APSEZ's strong financials and a ‘AAA/Stable'
domestic credit rating, the issue locked in a competitive coupon rate of 7.75% p.a. 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. *The
Proceeds will fund a proposed buyback of APSEZ’s US Dollar bonds, pending board
approval on 31 May 2025. A full subscription would extend the average debt maturity
significantly longer—from 4.8 years to 6.2 years.
“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,” said Mr. Ashwani
Gupta, Whole-time Director & CEO, APSEZ. APSEZ has set a target of
handling 1 billion tonnes of cargo by FY30, more than 2x the FY25 number. Beyond its
port operations, the company has also laid out ambitious plans to expand its
logistics and marine businesses.
With consistently improving debt repayment timelines and the cost of capital, APSEZ gains greater
access to patient capital and higher liquidity, crucial for long-term planning and large-scale
projects. Moreover, it also offers financial flexibility for inorganic opportunities and enables
reallocation of resources towards innovation, technology upgrades, and enhancing operational
efficiencies.
About Adani Ports and Special Economic Zone Ltd (APSEZ)
Adani Ports and Special Economic Zone Ltd (APSEZ), a part of the globally diversified Adani
Group, has successfully transformed from a port company into an Integrated Transport Utility
providing end-to-end solutions from its port gate to the customer gate. It is the largest port
developer and operator in India with 7 strategically located ports and terminals on the west
coast and 8 on the East coast, representing 27% of the country's total port volumes. This
extensive network provides capabilities to handle vast amounts of cargo from both coastal areas
and the hinterland. Beyond India, the company is developing a transshipment port at Colombo, Sri
Lanka, and operates the Haifa Port in Israel and Container Terminal 2 at Dar Es Salaam Port,
Tanzania, significantly enhancing its international presence. The company's comprehensive "Ports
to Logistics Platform," encompassing port facilities, integrated logistics capabilities
(including multimodal logistics parks, Grade A warehouses, and industrial economic zones),
positions it advantageously as India benefits from a global supply chain overhaul. APSEZ's
vision to be the largest ports and logistics platform in the world in the next decade is
unequivocally supported by its strategic capital management and the enhanced financial
flexibility afforded by this extended debt tenure.
