Jan 13, 2017 10:01 AM IST IST | Source: PTI

Adani Ports raises $500 mn via foreign currency bonds

The company will utilise these proceeds for refinancing its high cost external commercial borrowings (ECBs) to achieve its objective of reducing high cost debt and improving its debt maturity profile, APSEZ said in a statement.

Adani Ports and Special Economic Zone Ltd (APSEZ) said it has raised USD 500 million (over Rs 3,400 crore) by issuing foreign currency denominated bonds.

The company will utilise these proceeds for refinancing its high cost external commercial borrowings (ECBs) to achieve its objective of reducing high cost debt and improving its debt maturity profile, APSEZ said in a statement.

Earlier in a BSE filing, it said the finance committee of the company had approved "issuance of fixed rate senior unsecured notes aggregating to USD 500 million and has approved the pricing, tenure and other terms".

In a rising US interest rate environment and uncertain global markets, APSEZ identified a window of opportunity to execute a transaction that was successfully placed at a fixed interest of 3.95 per cent for 5 years tenor, the statement said.

This is the first international bond offering from an Indian private sector issuer in 2017 and was oversubscribed two times.

"The notes were distributed to high quality investors with good geographic distribution. US based investors were allocated 38 per cent, Asia based investors 38 per cent, and EMEA based investors 24 per cent," it said.

Earlier this week, APSEZ had said it is contemplating issuing foreign currency denominated bonds.

APSEZ is the country's largest ports developer and operator.

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