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MUMBAI: Adani Ports and Special Economic Zone Ltd (APSEZ), the transport and logistics arm of billionaire Gautam Adani’s group of companies, on Tuesday said it has raised $750 million from overseas investors through a bond offering.

Adani Ports, in a statement, said it has priced the $750 million senior unsecured USD notes issuance with 20 years and 10.5 years tranches at a fixed coupon of 5.0% and 3.8% respectively. The issuances were oversubscribed over three times, the company said.

“This issuance establishes the Adani Group as India’s leading issuer with the ability to access international capital markets across all market cycles. APSEZ is the only infrastructure company in India to successfully raise 20 years money from international markets, an achievement that underscores the strength of the company’s unique business model and strong fundamentals as well as APSEZ’s commitment to ESG and the UN Sustainability Development Goals. 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’)," the statement said.

Having issued the long tenor bond in developed markets, APSEZ has stretched its debt maturity to over seven years from six years. The issuance has also reconfigured ratio of APSEZ’s debt from overseas investors to 73% from 69%.

The latest dollar bond issuance by Adani Ports follows a $500 million issuance in January and will be used for both refinancing existing debt and capex.

“APSEZ is proud of being India’s first infrastructure company to raise USD 750 Mn. of dual tranche 10.5-year and 20- year unsecured bonds in global capital markets. 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," said Karan Adani, CEO and Whole Time Director of Adani Ports.

Axis Bank, Barclays, Citigroup, DBS Bank, Emirates NBD, JP Morgan, Merrill Lynch, Mizuho Securities, MUFG Securities, SMBC Nikko, and Standard Chartered Bank advised Adani Ports on this bond issuance.

International rating agency Moody’s had assigned a Baa3 rating to these bonds, with a negative outlook.

“APSEZ's Baa3 issuer rating primarily reflects the company's strong market position as the largest port developer and operator in India by cargo volume. The rating also takes into consideration the long-term growth potential of India's economy as a whole, a key driver behind the large increase in the volume of traded goods over the past few years.

APSEZ reported a strong 16.5% year-on-year growth in container cargo volumes in fiscal 2021 and increased its market share in India to 41.2% from 35.5% in fiscal 2020, the rating agency noted.

Last week, Adani Transmission Ltd’s distribution arm Adani Electricity Mumbai Ltd (AEML) raised $300 million in sustainability-linked bonds (SLBs) as part of its $2 billion Global Medium-Term Notes programme.

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