The state-owned Life Insurance (LIC) on Thursday fully subscribed the Rs 5,000 crore bond issue from Adani Ports and Special Economic Zone (APSEZ) on Thursday, a Business Standard report said citing people familiar with the matter. The bonds carry an interest rate of 7.75%.
APSEZ raised the money by issuing 15-year bonds in the Indian market. This was the company’s biggest-ever bond sale in Indian rupees and also the first time it issued bonds for a 15-year term.
The Business Standard report, citing a source said that LIC was the only investor and the deal was privately arranged and pre-approved. There were no other offers, and because it wasn’t a public issue, there was no option to raise more money. It’s likely the company chose this private route to avoid having to offer a higher interest rate in an open market.
The source further added that the tenure was long which usually never attract banks. The person said that there could have been participation from other insurance firms or provident funds, “but Adani approached only LIC for this transaction.”
By the end of financial year 2025, LIC had invested Rs 80,000 crore in corporate bonds, a report by Economic Times said.
The report further stated that Adani Ports is actively looking for ways to reduce its expensive debt. To do this, the company is focusing more on borrowing money for longer periods. This helps lower interest costs and gives better clarity on future cash flow.
As of March 31, Adani Ports had a total debt of Rs 36,422 crore, the report said. Its earnings before interest, taxes, and other costs (Ebitda) were Rs 20,471 crore. This brought its net debt-to-Ebitda ratio down to 1.78 times, an improvement from 2.3 times in the previous year.
Adani Ports owns 15 ports or terminals in India, and it also has one asset each in Israel, Tanzania, Australia, and Sri Lanka.