Business

Adani Ports to raise up to $1 billion via bonds

The Adani Group is now expected to start construction at the Carmichael coal mine site within days.

The Adani Group is now expected to start construction at the Carmichael coal mine site within days.   | Photo Credit: PAUL NORONHA

May use funds for capex, to retire debt

Adani Ports and Special Economic Zone (APSEZ) began road shows in Ahmedabad and Mumbai on Friday to raise up to $1 billion by issuance of foreign currency denominated bonds. The road shows will happen in Hong Kong and Singapore on Monday and Tuesday, respectively.

“The company is planning to raise up to $1 billion in dollar bonds for capex and refinancing existing loans. It can raise anywhere between $500 million and $1 billion. The final size, tenor, and pricing will depend upon the investors appetite,” said a source in the know of the development.

Moody’s, Fitch Ratings and S&P Global Ratings have assigned Baa3, ‘BBB-’ and ‘BBB-’ ratings with a stable outlook to the proposed foreign currency denominated bonds issuance by the company.

Other terms

“In accordance with the approval of the company’s board, the pricing, tenure and other terms of the foreign currency denominated bonds to be issued pursuant to the issue will be determined by the finance committee of the company, in its meeting which shall take place on or after June 26, 2019, and such details shall be intimated to you in due course,” the company said in a filing with the exchanges. The company’s debt has increased to ₹26,000 crore as on March 31, 2019, compared to ₹22,200 crore a year ago.

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Printable version | Feb 19, 2020 6:01:54 AM | https://www.thehindu.com/business/adani-ports-to-raise-up-to-1-billion-via-bonds/article28103072.ece

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