Adani Ports and Special Economic Zone Ltd (APSEZ) has raised $750 million via senior unsecured dollar notes issuance with 20 years and 10.5 years tranches at a fixed coupon of 5.0 per cent and 3.8 per cent, respectively.
The issuances were closed on July 26, 2021 and was oversubscribed over three times. APSEZ is the only infrastructure company in India to raise 20 years money from international markets, the company said in a release.
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').
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%.
Karan Adani, CEO and Whole Time Director of APSEZ, said, "...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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