In a significant milestone for India's infrastructure sector, Adani Ports and Special Economic Zone Ltd (APSEZ) has successfully raised ₹5,000 crore through a fully subscribed 15-year non-convertible debenture (NCD) by the Life Insurance Corporation of India (LIC). This marks the largest domestic debt raise in APSEZ’s history and one of the longest-tenure rupee bonds ever issued in the Indian debt market.



Confirmation of Credit Strength and Financial Strategy



The bond issuance not only highlights APSEZ’s strong market reputation but also serves as a resounding endorsement of its sound financial planning. The company retains a prestigious ‘AAA/Stable’ rating from India’s top rating agencies—CRISIL, ICRA, CARE, and India Ratings. This high credit rating reflects the trust investors continue to place in the company’s stability and long-term outlook.



Key Features of the Issuance



Issuer: Adani Ports and SEZ Ltd (APSEZ)



Subscriber: Life Insurance Corporation of India (LIC)



Amount Raised: ₹5,000 crore



Instrument: 15-year Non-Convertible Debenture (NCD)



Coupon Rate: 7.75% per annum



Listing: Bombay Stock Exchange (BSE)

Tenure: Longest in APSEZ’s history



This landmark issuance will help the company refinance existing liabilities, with a potential buyback of US dollar bonds on the horizon—pending board approval on May 31, 2025.



Strengthening the Capital Structure



The NCD issue significantly boosts APSEZ’s capital strategy, increasing the company’s average debt maturity from 4.8 years to 6.2 years. This move fosters a more resilient and balanced financial profile, better equipped to navigate both market volatility and long-term capital needs.



Fueling Ambitious Growth Goals



As part of its bold vision to handle 1 billion tons of freight annually by FY30, APSEZ is going beyond traditional port operations. The company is strategically increasing its investments in marine services, integrated logistics, and other value-added infrastructure. The stable, long-term capital secured through this bond issuance will support these expansion efforts, especially in capital-intensive and technologically evolving segments.



A Vision Beyond Financing



APSEZ views this transaction not just as a fundraising activity but as a foundational step in its long-term strategy. With access to patient capital and predictable costs, the company is now better positioned to pursue both organic growth and strategic acquisitions. Additionally, this financial cushion provides the liquidity needed for future innovation and operational excellence.



Conclusion



The successful ₹5,000 crore bond issuance by APSEZ, fully subscribed by LIC, is a testament to the company’s robust financial health and strategic foresight. It marks a turning point in its journey toward becoming a global leader in logistics and port infrastructure, setting the stage for sustained growth, innovation, and resilience in the years ahead.