APSEZ Raises ₹5,000 Crore via 15-Year NCDs in Landmark Domestic Deal
Ahmedabad, May 30 (TheTrendingPeople.com) – Adani Ports and Special Economic Zone (APSEZ) has raised ₹5,000 crore through a 15-year Non-Convertible Debenture (NCD) issue, marking one of the longest-tenure bond offerings in Indian capital markets.
The issue was fully subscribed by Life Insurance Corporation of India (LIC) and priced at a competitive coupon rate of 7.75%, the company announced on Friday.
APSEZ, India’s largest integrated port and logistics company, said the long-duration financing will support its capital management strategy and may fund a buyback of US dollar-denominated bonds, subject to board approval on May 31, 2025.
A Strong Vote of Confidence
The NCD issuance was backed by APSEZ’s 'AAA/Stable' domestic credit rating and robust financials. The debentures will be listed on the BSE.
“This isn’t merely a financing exercise; it’s a proactive execution of a meticulously developed Capital Management Plan,” said Ashwani Gupta, Whole-time Director and CEO of APSEZ.
He emphasized that the company’s plan aims to:
- Maintain conservative leverage
- Extend its debt maturity profile
- Lower borrowing costs
- Diversify funding sources
The full subscription also reflects APSEZ’s deep access to long-term capital at attractive pricing.
Longest Tenure, Strategic Purpose
The 15-year maturity structure represents APSEZ’s longest domestic bond issuance to date, and one of the longest in Indian financial history.
If the bond buyback proceeds as planned, it would extend APSEZ’s average debt maturity from 4.8 years to 6.2 years, a significant shift toward long-term financial stability.
Driving Growth Towards a 2030 Vision
APSEZ has set an ambitious target to handle 1 billion tonnes of cargo by 2030, more than double its estimated volume for FY 2024–25.
The company currently operates:
- 7 ports and terminals on the west coast
- 8 ports on the east coast
This network accounts for 27% of India’s total port volumes, offering connectivity to both coastal cargo and the hinterland.
Expanding Global Footprint
Beyond Indian shores, APSEZ is actively expanding its global presence, with operations at:
- Haifa Port in Israel
- Container Terminal 2 at Dar Es Salaam Port, Tanzania
- A transhipment port under development in Colombo, Sri Lanka
These projects reflect APSEZ’s broader strategy to emerge as the world’s largest integrated transport utility.
What Are NCDs and Why It Matters
Non-Convertible Debentures (NCDs) are long-term financial instruments that companies use to raise funds without giving up equity. These instruments provide fixed returns to investors and are particularly appealing to institutional players like LIC.
The current issue marks a significant moment in India’s corporate debt landscape, showcasing how strong fundamentals can attract long-duration capital from domestic markets, even amid global uncertainties.