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Adani Ports and Special Economic Zone (APSEZ) has raised $750 million through senior unsecured US dollar notes with 20-year and 10.5-year tranches at a fixed coupon of 5 per cent and 3.8 per cent respectively.
With the long tenor bond issue in developed markets, APSEZ has elongated the debt maturity to over 7 years from 6 years. APSEZ’s natural hedge through its foreign currency earnings allows the company to manage its foreign currency exposure. This issuance has also reconfigured the ratio of APSEZ’s debt from overseas investors from 69 per cent to 73 per cent.
“The issuance reflects the confidence international financial markets have in the fundamentals of the Adani Group’s business model and its ability to execute,” Karan Adani, CEO and Whole Time Director of APSEZ, said.
“It further demonstrates APSEZ’s ability to mobilise global resources commensurate with its long asset life and is a part of the firm’s capital management program to lock lower interest rates over an extended tenor and extend debt maturity,” he stated adding that the reduced cost of capital will translate into greater capital efficiency as well as enhanced shareholder returns.
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