In a major boost to Adani Ports and Special Economic Zone (APSEZ), the Life Insurance Corporation of India (LIC) has fully subscribed to Adani Ports’ ₹ 5,000 crore 15-year bond issue at 7.75%, as other companies are struggling to raise funds and there could be some difficulties. The move also raises fresh questions about institutional support in times of market volatility.
LIC was the sole bidder in a pre-approved, privately negotiated deal. No other bids were submitted, and since the issuance wasn’t conducted through the open market, a green shoe option wasn’t included,” said a source familiar with the matter. The source added that the company may have avoided a public offering to sidestep the need to offer a higher coupon rate.
💼Adani Ports Group’s Debt
Adani Ports has made its largest-ever rupee-denominated bond issuance, marking its return to the market for the first time since January 2024. The company had slowed fundraising activity after Hindenburg Research’s 2023 allegations of stock manipulation.
As of April 2025, Adani Ports had outstanding bonds totaling approximately ₹6,250 crore, according to ratings agencies.
In January 2024, it raised ₹250 crore each through five- and ten-year bonds, offering coupon rates of 8.70% and 8.80%, respectively. Just last week, the board approved plans to raise up to ₹6,000 crore through additional bond issues. These new bonds have received AAA ratings from Crisil and Care Ratings.
With the latest issuance complete, more Adani Group firms are expected to access the domestic debt market, especially amid forecasts of declining bond yields driven by expected RBI rate cuts and abundant liquidity.
As of January 2024, LIC was the largest bondholder in Adani Ports, holding bonds worth around ₹5,400 crore, according to the January issue’s information memorandum.
Adani Ports and Special Economic Zone Ltd (APSEZ) has successfully raised INR 5,000 crore through a 15-year Non-Convertible Debenture (NCD).
— ANI (@ANI) May 30, 2025
Backed by APSEZ's strong financials and a ‘AAA/Stable' domestic credit rating, the issue locked in a competitive coupon rate of 7.75%… pic.twitter.com/zwv5tLh7EF
Adani Ports is strategically refinancing its high-cost debt by opting for longer-term instruments, aiming to reduce interest expenses and enhance cash flow stability.
As of March 31, the company’s net debt stood at ₹36,422 crore, while its EBITDA was ₹20,471 crore. This led to an improved net debt-to-EBITDA ratio of 1.78x, a notable improvement from 2.3x in FY2024. During the same period, Adani Ports managed 450 million metric tonnes of cargo out of its total capacity of 633 million metric tonnes.