Gautam Adani's Firm Raises ₹5,000 Crore via Bonds
The bond issue is a significant development for Adani Ports, and the company's ability to raise funds through the bond market is a testament to its creditworthiness. The issue's success will depend on the response from investors, but with a high credit rating and a competitive coupon, the bonds are expected to be in high demand.
Adani Ports and Special Economic Zone is set to raise ₹5,000 crore through a 15-year non-convertible debenture issue, marking its largest bond issuance, with funds to be used for capital expenditure and debt refinancing.
The company's net debt-to-Ebitda ratio has improved to 1.78x from 2.3x at the end of FY24, and the bonds are rated Crisil AAA, indicating a high level of creditworthiness. The issue opens for bidding on May 29, with a total size capped at ₹5,000 crore, and market insiders expect the bonds to be subscribed by three financial institutions, including a state-run insurer.
This bond issue marks Adani Ports' return to the domestic bond market after a 17-month hiatus, with the company aiming to raise up to 50 billion rupees through the 15-year bond issue. The issue is expected to offer a coupon of around 7.75%, and the company's board approved raising up to 60 billion rupees through bond sales in May.
The successful completion of this bond issue will help Adani Ports to achieve its financial goals, and the company's improved debt-to-Ebitda ratio is a positive sign for investors. With the company's plans to use the funds for capital expenditure and debt refinancing, this bond issue is expected to have a positive impact on the company's financial health.