Adani Ports & Special Economic Zone, the largest port operator in the country, is tapping the international debt market to raise at least $500 million. This is the third large bond sale by a domestic entity after Exim Bank’s $1 billion issue. It was followed by the State Bank of India with a $6 billion sale.
Adani Ports is the largest port developer and operator in the country in terms of volume with annual capacity of 478.6 million tonnes.
“We are in the dollar debt market and are planning to raise $500 million through a Reg S issue,” a PTI report quoting a merchant banking source said. It had paid a coupon of 4.2 per cent for a $750 million issue last July.
In December, the company had raised another $300 million to retire some of its debt.
A Reg S issue in the market means resident American investors cannot subscribe to the issue.
The company will use the proceeds from the issue to primarily refinance the early redemption of its dollar bonds due in 2022.
The issue has been rated BBB- by Fitch and Baa3 by Moody’s. The company said in a filing to the bourses on Tuesday that the interest on the fixed rate unsecured notes is 3.10 per cent annually.
Fitch Ratings in a note gave the proposed senior unsecured notes sale by the port operator a BBB- rating with a negative outlook.
The rating reflects the company’s market leading position, the stability of long-term cargo revenue and its operational efficiency.
Fitc said the pandemic may result in weaker domestic demand and exports, but cargo mobility is largely uninterrupted despite the global lockdown.
Shares of Adani Ports today settled 0.92 per cent lower at Rs 518.65.