NEW DELHI, May 30:  Adani Ports and Special Economic Zone Ltd (APSEZ), India’s largest integrated transport utility, on Friday said it has raised Rs 5,000 crore in its largest ever domestic bond issue.

  APSEZ raised the fund through a 15-year Non-Convertible Debenture (NCD) from Life Insurance Corporation of India (LIC), the firm said in a statement.

NCDs were raised at a competitive 7.75 per cent per annum coupon rate.

“Backed by APSEZ’s strong financials and a ‘AAA/Stable’ domestic credit rating, the issue locked in a competitive coupon rate of 7.75 per cent p.a. and was fully subscribed by LIC. The debentures will be listed on the BSE,” it said.

The issue shows APSEZ’s deep access to long-term capital from diversified sources at attractive pricing and significantly enhances APSEZ’s debt maturity profile.

“The transaction highlights APSEZ access to domestic markets for its longest tenure issuance till date, and one of the longest in Indian capital markets history,” the statement said. “The proceeds will fund a proposed buyback of APSEZ’s US Dollar bonds, pending board approval on May 31, 2025.”

A full subscription would extend the average debt maturity significantly longer – from 4.8 years to 6.2 years.

“This isn’t merely a financing exercise; it’s a proactive execution of a meticulously developed capital management plan for APSEZ, focused on maintaining conservative leverage, extending the debt maturity profile, lowering cost, and diversifying funding sources. This plan is designed to support APSEZ with its long-term vision to become the world’s largest integrated transport utility,” APSEZ CEO Ashwani Gupta said.

APSEZ has set a target of handling 1 billion tonnes of cargo by FY30, more than 2x the FY25 number. Beyond its port operations, the company has also laid out ambitious plans to expand its logistics and marine businesses.

The board of APSEZ is scheduled to meet on May 31 to consider a US dollar bond buyback.

In FY25, the company reported an EBITDA (earnings before interest, taxes, depreciation, and amortisation) of Rs 20,471 crore, marking a 19 per cent increase year-on-year. As a result, its net debt-to-EBITDA ratio declined to 1.8x – the lowest in the past decade. This performance comes despite ongoing capital expenditure across its network of 18 ports and terminals, including the launch of Vizhinjam in Kerala – India’s first global transshipment port – and a new terminal in Colombo, Sri Lanka.

“With consistently improving debt repayment timelines and the cost of capital, APSEZ gains greater access to patient capital and higher liquidity, crucial for long-term planning and large-scale projects. Moreover, it also offers financial flexibility for inorganic opportunities and enables reallocation of resources towards innovation, technology upgrades, and enhancing operational efficiencies,” the statement added. (PTI)