APSEZ’s Plan to Become a 1-Billion Tonne Cargo Giant
Newzdaddy Business Updates
Synopsis of the Article
Adani Ports and Special Economic Zone Ltd (APSEZ) raised INR 5,000 crore via 15-year Non-Convertible Debentures (NCDs).
The bonds were fully subscribed by Life Insurance Corporation of India (LIC).
NCDs carry a 7.75% annual coupon and will be listed on BSE.
This is APSEZ’s largest-ever domestic bond issuance and one of the longest tenors in Indian capital markets.
Proceeds from this bond will fund a proposed US Dollar bond buyback, pending board approval.
With this issuance, average debt maturity is extended from 4.8 years to 6.2 years.
The move is part of APSEZ’s broader Capital Management Plan, focusing on conservative leverage and long-term financial health.
APSEZ maintains a ‘AAA/Stable’ credit rating from CRISIL, ICRA, CARE, and India Ratings.
CEO Ashwani Gupta stated the strategy supports their goal to become the world’s largest integrated transport utility.
The company aims to handle 1 billion tonnes of cargo by FY30, doubling current levels.
APSEZ is also expanding its logistics and marine businesses.
The deal demonstrates deep access to long-term capital, financial flexibility, and investor confidence.
Adani Ports and Special Economic Zone Ltd (APSEZ), India’s biggest port and transport company, just made a big move. The company raised ₹5,000 crore by selling bonds, which is the largest amount it has ever raised from India’s bond market. These bonds are called Non-Convertible Debentures (NCDs), and they will last for 15 years. The entire amount was bought by Life Insurance Corporation of India (LIC).
This is not just any regular money-raising activity. It’s part of a smart long-term plan by APSEZ to make its finances stronger, more flexible, and more ready for the future.
NCDs are like loans taken from investors. The company promises to pay interest, which in this case is 7.75% per year, and return the full money after 15 years. These bonds will be traded on the Bombay Stock Exchange (BSE).
This is the longest bond ever issued by APSEZ and one of the longest in India’s capital market history. It shows that big investors like LIC trust APSEZ and believe in its future.
The bond sale also helps the company improve the average time it has to repay all its debts, which now goes up from 4.8 years to 6.2 years. That means APSEZ won’t have to worry about paying back all its loans very soon, giving it more time and peace of mind.
The money raised will likely be used to buy back some of the company’s old US Dollar bonds, though this will be confirmed after a board meeting on 31 May 2025. Buying back old bonds helps a company manage its debt better and reduce future interest payments.
Mr. Ashwani Gupta, the company’s CEO and Whole-time Director, said this is more than just raising money. “It’s a smart step in our Capital Management Plan. We want to keep our debts low, manage them wisely, reduce costs, and explore different ways of funding our business,” he said.
He also mentioned that the company wants to handle 1 billion tonnes of cargo by the year 2030, which is more than double what they do today. To do that, APSEZ is growing its logistics and marine services as well.
APSEZ has the highest credit rating—‘AAA/Stable’—from CRISIL, ICRA, CARE, and India Ratings. This shows that rating agencies believe the company is very reliable and unlikely to default on its payments.
Because of this good reputation, APSEZ can raise money at lower interest rates and for longer periods, compared to many other companies. This also helps them invest in technology, innovation, and big infrastructure projects over time.
This bold financial move is part of APSEZ’s journey to become a world leader in ports and transportation. By managing money smartly and thinking ahead, the company is creating a strong foundation for the future.
Whether it’s handling more cargo, using new technology, or serving global trade routes, APSEZ is showing it has what it takes to think big and act wisely.
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