Adani Ports and Special Economic Zone (APSEZ) is likely to price its dollar-denominated bond issue at 195-200 basis points over the US treasury yield, sources said.
“APSEZ is looking to issue 144 A/’Regulation S’ bonds with a tenure of five years, and the initial price guidance was at 210 bps over the US treasury yield. The final price guidance will probably be close to 195 bps over the US treasury yield,” a source said. Standard & Poor’s ratings services has assigned a ‘BBB-‘ long-term corporate credit rating to the company’s proposed issue.
The proceeds of the bonds, if and when issued, will be utilised for the refinancing existing ECB facility and capital expenditure as provided under the extant guidelines of Reserve Bank of India, the company had said in a filing on the Bombay Stock Exchange. Bank of Amercia-Merrill Lynch, Barclays, Citi and Emirates NBD are the bankers to the issue, according to sources.
Adani Transmissions is also rumoured to have raised R1,250 crore in the domestic market through three-year bonds at a coupon rate of 9.45%. An S&P note stated that APSEZ’s annual capital expenditure will be close to R2,500 crore for the next two years before falling to R1,500 crore.
The company is the largest port operator in India, with seven operational ports and throughput of 144 mmt of cargo in FY15, , the note said, adding that APSEZ accounted for about 12% of India’s national cargo and about 25% of cargo volumes for private ports.
Indian companies have so far raised more than $7 billion through offshore bond issuances in calendar year 2015. Bharti Airtel had raised one billion dollars through its offshore bond issue at a tight spread of 210 basis points over the US Treasury yield.
A few months back, Bank of India had raised $750 million dollars at a spread of 185 bps over the US Treasury yield.