Adani Ports Plans ₹50,000 Crore 15-Year Bond Issue
Adani Ports and Special Economic Zone (APSEZ), India’s largest private port operator, is preparing to re-enter the domestic debt market with a landmark bond issue. The company will raise up to ₹50,000 crore through a 15-year rupee-denominated bond, marking both its longest tenor and largest local market issuance to date. This strategic financial move comes after a 17-month pause in domestic fundraising.
Bids are expected to be collected from investors and institutional buyers within the week, with the bond issuance offering a fresh signal of the group’s effort to regain financial momentum.
Strong Ratings and Competitive Yield
The proposed bonds are expected to offer a coupon rate around 7.75%, providing a strong incentive for long-term investors. Notably, the issue has received AAA credit ratings from India’s top rating agencies—Crisil, ICRA, and CARE—highlighting its high safety profile and low risk of default.
The long-term structure is intended to ease refinancing pressure while aligning with the company’s infrastructure-focused cash flow projections. The duration is also expected to appeal to pension funds, insurers, and other institutional investors seeking stable, long-term fixed income assets.
Bond Issue Amid Regulatory Challenges
This fundraising move comes amid continuing regulatory and reputational challenges for the Adani Group. The company remains under investigation by SEBI and certain U.S. authorities over allegations of financial misconduct, including claims of shell companies and improper overseas transactions. The group has vehemently denied these allegations, terming them politically motivated and unsubstantiated.
Despite the ongoing scrutiny, the group has seen a partial recovery in its stock performance following the 2023 Hindenburg Research fallout. The latest bond initiative is viewed as a litmus test of investor confidence and market credibility.
Market Impact and Strategic Implications
If successful, the issuance could set a new benchmark for Indian corporate bonds, especially for infrastructure-linked firms. Analysts believe it may inspire similar long-duration debt instruments by other companies looking to secure long-term capital at competitive rates.
Additionally, this re-entry into the domestic bond market underlines Adani Ports’ broader strategy to diversify its capital structure while signaling long-term resilience and operational focus amidst external challenges.
With institutional interest expected to be robust, this bond issue could reinforce Adani Ports’ standing as a stable investment vehicle in India’s evolving corporate debt landscape.
