LIC has fully subscribed to Adani Ports and Special Economic Zone's ₹5,000 crore bond (approx $584.5 million USD) issue was a privately negotiated said a report by Business Standard.
This transaction, meaning LIC was the sole investor, and no other bids were received. The bonds have a 15-year tenure with a 7.75% coupon rate, making it Adani Ports' largest-ever rupee-denominated bond issuance.
This marks Adani Ports’ biggest-ever rupee-denominated bond issue and its first 15-year bond sale.
Notably, the 7.75% coupon rate was priced 126 basis points above comparable government securities, reflecting strong investor appetite.
The Business Standard report cited a source aware of the development, who said “There was only one bid from LIC and it was a pre-approved, privately negotiated transaction. No other bids were received, and since it wasn’t a market-based issuance, there was no green shoe option either.”
The source further added that it’s possible that the company was concerned about having to offer a higher coupon rate had it come to the broader market.
The funds raised will be used for refinancing existing debt and capital expenditure for port infrastructure development 12. This move aligns with Adani Ports' strategy to shift towards longer-term financing to reduce borrowing costs.
LIC’s exclusive participation signals strong institutional confidence in Adani Ports, reinforcing its role as a major player in India’s corporate debt market. LIC has been expanding its corporate bond investments with ₹80,000 crore invested in FY25, a 30% increase from last year.
By securing 15-year funding at 7.75%, Adani Ports reduces reliance on short-term, high-interest debt, improving financial stability. The company is actively working to extend debt maturity, lowering its net debt-to-EBITDA ratio, which stood at 1.78x as of March 31, 2025.
Adani Ports’ stock has been rising for six consecutive sessions, reflecting positive investor sentiment following the bond issuance.
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