Adani Ports Plans to Raise Rs 15,000 Crore Via Overseas Bonds: Report
New Delhi: To reduce its debt cost, Adani Ports and Special Economic Zone Ltd (APSEZ) plans to raise Rs 15,000 crore through overseas bonds to refinance existing foreign loans and fund capital expenditure.
Although the company did not specify the amount in its BSE filing, sources said it would raise around Rs 15,000 crore through the global bonds.
Adani group announced earlier this year the demerger of all ports and power assets into two already listed firms, while transmission business would be spun out into a new company to be listed separately.
APSEZ has a debt of over Rs 11,000 crore.
"Pursuant to the approval of the Finance Committee of Board of Directors, the Company has appointed intermediaries for organizing investor meetings for its proposed foreign currency denominated bonds. The bond offering may follow, subject to market conditions," APSEZ said in the BSE filing.
It added: "The proceeds of the bonds, if and when issued, will be utilised for the refinancing of existing ECB (external commercial borrowing) facility and capital expenditure as provided under the extant guidelines of Reserve Bank of India."
The filing did not mention the amount to be raised. Adani Group spokesperson declined to comment on it.
However, a source said, "APSEZ is planning to raise Rs 15,000 crore through issuance of global bonds to convert existing debt into dollar-denominated debt and to cut the interest cost."
Meanwhile, rating agency Moody's today assigned a provisional (P)Baa3 rating with stable outlook to APSEZ's proposed US dollar senior unsecured bond.
"Moody's Investor Service has assigned a first-time provisional issuer rating of (P)Baa3 to...APSEZ. At the same time, Moody's has assigned a provisional (P)Baa3 rating to APSEZ's proposed USD senior unsecured bond," it said in a statement, adding that the outlook for the ratings is stable.
APSEZ will apply the proceeds of the bond issuance to partially refinance existing bank term loan facilities and for capital expenditure. The proposed bond will represent a senior unsecured obligation, the rating agency said.
The ratings are provisional, based on the proposed bond's draft documents which have been reviewed by Moody's. It is expected that the provisional status of the ratings will be removed and a definitive ratings will be assigned upon the satisfactory review of the final documents, it added.
"The (P)Baa3 rating primarily reflects APSEZ's strong market position as the largest port developer and operator by cargo volume in India, and the strength of its landmark Mundra Port concession in Gujarat," Moody's Vice President and senior analyst Abhishek Tyagi said.
