Adani Ports & SEZ likely to raise ₹5k crore through 15-yr bonds today

On Thursday, Indian companies plan to raise over ₹13,000 crore via debt sale

Adani Ports and Special Economic Zone (APSEZ) — the country’s largest port developer and operator — is set to tap the domestic capital market on Thursday via a bonds’ issue.

 

It plans to raise up to ₹5,000 crore through 15-year bonds — the biggest-ever rupee bond sale — according to sources. The issuance will not include a green shoe option, which normally permits an over-allotment of up to 15 per cent above the base issue size.

 

Market participants said the coupon on 15-year bonds could be in the range of 7.7-8 per cent.

 

“The issuance is tomorrow (Thursday), and this is its first time issuing a 15-year bond,” said a market participant.

 

 

How the proceeds would be used could not be immediately ascertained.

 

An email sent to the Adani group remained unanswered till going to press.

 

APSEZ has a capacity of 633 million tonnes (MT) and handled 450 MT of cargo in 2024-25 (FY25). 

 

The company operates a portfolio of 15 domestic ports/terminals with international presence at four global ports/terminals. 

 

Along with its port operations, it has its wide logistics network and offers various port-based marine services to its owned ports/terminals as well as other ports.

 

According to a recent rating note by rating agency CRISIL, APSEZ’s bank loan facilities and non-convertible debentures have been rated “AAA” while its commercial papers have been rated A1+.

 

Additionally, recently global rating agency Fitch Ratings has affirmed APSEZ’s long-term foreign-currency issuer default rating at 'BBB-' and removed it from rating watch negative.

 

The domestic debt capital market is witnessing a flurry of corporate bond issuances ever since the Reserve Bank of India (RBI)’s Monetary Policy Committee started easing interest rates.

 

On Thursday, Indian companies plan to raise over ₹3,000 crore via debt sale.

 

The RBI injected trillions of rupees through multiple open market operations and dollar-rupee buy-sell swaps, among others, thereby pushing system liquidity into surplus.

 

This, in turn, led to a rally in the yields of 10-year government securities.

 

The RBI had reduced the repo rate by 25 basis points (bps) each in February and April and changed its stance to “accommodative” from “neutral” (in April). This could mean more rate cuts in the coming policy review meetings.

 

Hopes of further rate cuts coupled with ample liquidity has led to a rally in yields on better-rated corporate bonds.

 

Major issuers, including state-owned entities and private sector issuers are capitalising on this, and tapping the market to raise funds.

 

April saw close to ₹1 trillion worth of bonds being issued.

 

In FY25, Indian companies raised a record amount —around ₹11 trillion — from the domestic capital market via bonds.

 

In FY24, corporates raised a little over ₹10 trillion from the capital market.