Demand Is High for Adani Ports’ First Bond Issue in More Than Two Years
Mumbai: On Monday, Adani Ports and Special Economic Zone, the biggest private port operator in India, made its debut on the bond market after a gap of more than two years, and the offering was well-received.
The Supreme Court’s ruling that the group does not need to go through further examinations beyond the market regulator’s present oversight has prompted the fundraising.
The corporation was severely impacted by accusations of misconduct made by a US short-seller, but the ruling provided significant relief.
Bids of ₹ 5 billion ($60.2 million) were received earlier in the day by the group’s port operator business for two listed notes. One bond matures in five years, while the other has a coupon of 7.80% and 7.90%.
Three merchant bankers claim that the business got bids totaling ₹ 10 billon from banks and insurance companies.
According to the bankers, the firm provided a coupon that was 15-20 basis points more than those of companies with comparable ratings.
As the group is now assessing demand, the higher coupon may have been given to please investors, according to Rockfort Fincap founder and managing partner Venkatakrishnan Srinivasan.
When Adani Ports last used the bond market, it raised ₹ 10 billion at a coupon rate of 6.25% in October 2021.
When Reuters sent an email requesting remarks, the organization did not reply right away.
The issue’s lone arranger was Trust Investment Advisors.
Adani Ports, which manages 13 ports and terminals nationwide, declared last week that it plans to issue bonds in the upcoming months with a maximum value of ₹ 50 billion, mostly for the purpose of refinancing its current debt.
According to a banker that organizes bonds for the organization, the corporation has received board clearance to raise money through the public issuance of bonds.
Adani Ports may soon consider issuing a public offering to raise up to ₹ 10 billion. It hasn’t chosen lead managers or begun the paperwork yet,” the banker continued.
