APSEZ India’s first infrastructure company to raise fixed coupon US$ 750 mn in bonds with tenor of 20 years

Adani Ports and Special Economic Zone (APSEZ) successfully priced a US$ 750 million senior unsecured USD notes issuance with 20 years and 10.5 years tranches at a fixed coupon of 5.0% and 3.8% respectively. The issuances were closed on July 26, 2021 and were oversubscribed by over 3 times.

APSEZ is the only infrastructure company in India to successfully raise 20 years money from international markets, an achievement that underscores the strength of the company’s unique business model and strong fundamentals as well as APSEZ’s commitment to ESG and the UN Sustainability Development Goals.

Within the Adani portfolio, APSEZ is the third issuer of long tenor bonds after energy utilities Adani Green Energy Ltd (AGEL) and Adani Transmission Ltd (ATL).

APSEZ has continued to receive exceedingly strong participation (for its successive bond offerings) from its high-quality real money investors across all geographies.

This issuance establishes the Adani Group as India’s leading issuer with the ability to access international capital markets across all market cycles.

Having issued the long tenor bond in developed markets, APSEZ has elongated the debt maturity to over 7 years from 6 years. APSEZ’s natural hedge through its foreign currency earnings allows the company to manage its foreign currency exposure. This issuance has also reconfigured the ratio of APSEZ’s debt from overseas investors from 69% to 73%.

Following this issuance, APSEZ has raised the national bar for issuing long tenor bonds and has established a robust financial foundation that will help continue support the development of large infrastructure assets.

Karan Adani, CEO and Whole Time Director of APSEZ, said, “APSEZ is proud of being India’s first infrastructure company to raise US$ 750 mn of dual tranche 10.5-year and 20-year unsecured bonds in global capital markets. This issuance reflects the confidence international financial markets have in the fundamentals of the Adani Group’s business model and its ability to execute. It further demonstrates our ability to mobilise global resources commensurate with our long asset life and is a part of our capital management program to lock lower interest rates over an extended tenor and extend debt maturity. The reduced cost of capital will translate into greater capital efficiency as well as enhanced shareholder returns.”

The JLMs to the transaction were Axis Bank, Barclays, Citigroup, DBS Bank, Emirates NBD, JP Morgan, Merrill Lynch, Mizuho Securities, MUFG Securities, SMBC Nikko, and Standard Chartered Bank.

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