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Adani International Container Terminal raises $300 million via bonds to refinance debt

The ten-year bonds were sold at a fixed coupon rate of 3 per cent, which was lowest coupon achieved by any corporate Indian issuer in the last 5 years

twitter-logoBusinessToday.In | December 28, 2020 | Updated 15:08 IST
Adani International Container Terminal raises $300 million via bonds to refinance debt
Adani International Container Terminal' bond was over-subscribed by about 10 times

Adani International Container Terminal Pvt Ltd (AICTPL), a joint venture between Adani Ports and Special Economic Zone and Terminal Investment, has raised $300 million by issuing bonds to international investors. This was the first bond issuance by the JV which was over-subscribed by about 10 times on the back of large participation from marquee real money investors. The fund raised via bonds proceeds will be used to refinance the existing debt of AICTPL.

The ten-year bonds were sold at a fixed coupon rate of 3 per cent, which was also the lowest coupon achieved by any corporate Indian issuer in the last 5 years, Adani Ports and Special Economic Zone Ltd (APSEZ) said in a regulatory filing.

"The investors were attracted by its strong shareholders, APSEZ & TiL, and their combined business strengths embedded in the Company, backed by the credit quality of the issuance supported by investment grade rating affirmation by all 3 international rating agencies," APSEZ said.

The company said that the bond issuance was in line with Adani Group's philosophy to tap the capital market to re-engineer the capital structure for assets and finance them with debt extending for the life of the project. The issuance also fits perfectly into Terminal Investment's strategy to diversify and optimise funding sources for its terminal companies around the globe, it added.

Barclays, Citigroup, DBS Bank, MUFG, and Standard Chartered were global coordinators, book-runners, and lead managers.

Commenting on the development, Karan Adani, CEO and Whole Time Director of APSEZ said, "The issuance is in line to the Group's capital management philosophy of re-engineering the capital structure & extending debt maturity inline to the life of asset. Our relationship with TiL is very important to us & holds the key to our strategy for making Mundra container hub for the region and AICTPL as our flagship terminal. Successful issuance demonstrates the appreciation & acceptance of level of corporate governance at the private JV level."

"The first note issuance by any port vertical JV company also paves the way and sets the benchmark for other JVs & Subsidiary companies of the group to tap the capital market," he added.

AICTPL is a container terminal operating company based out of Mundra, having an annual capacity of handling over 3.1 million TEUs (twenty-foot equivalent unit). 

By Chitranjan Kumar

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