The Life Insurance Corporation of India (LIC) has fully subscribed to a 15-year non-convertible debenture (NCD) for Rs 5,000 crore, marking the largest domestic debt raise for Adani Ports and Special Economic Zone Ltd (APSEZ) to date. This offering, with a 7.75% annual coupon, represents the longest-tenure rupee bond in APSEZ’s history and one of the longest in the Indian debt market, set to be listed on the BSE.
This strategic move aligns with APSEZ’s financial plan to optimize its capital structure, with the raised funds potentially targeting a buyback of existing US dollar bonds, pending board approval on May 31, 2025. The company has successfully extended its average loan term from 4.8 to 6.2 years, enhancing its financial resilience.
APSEZ, maintaining a ‘AAA/Stable’ rating from prominent agencies, aims to more than double its freight handling to 1 billion tons by FY30. With increased investments in marine services and logistics, improved debt maturity is crucial for its growth strategy, which necessitates ongoing capital investment.
Positioned for both organic growth and strategic acquisitions, APSEZ views the bond issuance as foundational to realizing its long-term vision while ensuring liquidity for future innovations.
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