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Rutuja Nigam made post

Why is Adani Ports planning to raise $750 million by way of bonds in the international market?

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Arti Chavan answered.
7 days ago

Adani Ports and SEZ launched an offshore bond offering to raise as much as $750 million. This is the most aggressive and largest bond offering post COVID. Earlier REC and UPL had raised $500 million via the same route. Adani Ports will be raising this capital by way of 7-year bonds, maturing in 2027 bearing a coupon rate of 4.2% per year.

It may be recollected that Adani Ports recently acquired Krishnapatnam Port Co. The funds raised globally will be used to repay existing loans of Adani Ports as well as its subsidiaries like Krishnapatnam Port. The Krishnapatnam port deal is yet to be closed out. Adani Ports has already tapped the bond markets twice in 2019.

Adani Group has been one of the most active fund raisers in the global market. In 2019 alone, Adani group companies had 5 dollar bond offerings totalling $2.76 billion. Even Adani Green had raised funds to the tune of $500 million during the last year. In February 2020, just before COVID, Adani Electricity raised $1 billion in its maiden dollar bond offering.