Adani Ports and Special Economic Zone (APSEZ), India’s largest private port operator, has successfully raised ₹5,000 crore through a 15-year bond issuance, with Life Insurance Corporation of India (LIC) fully subscribing to the offer.
LIC’s Exclusive Investment in Adani Ports’ Longest-Tenor Bonds
The bond sale, priced at a 7.75% annual coupon rate, marks Adani Ports’ largest rupee-denominated debt issuance and its first 15-year bond sale. LIC was the sole bidder, securing the entire issue through a pre-approved, privately negotiated transaction.
Strategic Use of Funds
The proceeds from the bond issuance will be utilized for refinancing existing debt and capital expenditure towards the development of port infrastructure.
Market Impact and Investor Sentiment
Experts note that extended-tenor bonds are rare for private issuers in India, making this issuance a significant milestone. The bond was priced 126 basis points above comparable government securities, reflecting strong investor confidence in Adani Ports.
Future Debt Market Trends
Following this successful issuance, more Adani Group companies are expected to tap into the domestic debt market, especially as bond yields decline due to policy rate cuts and surplus liquidity.
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