Gautam Adani hits jackpot as LIC invests Rs 50000000000 in this company of Adani, name is..
Masterstroke by Gautam Adani as Adani Group deploys India's first..., it is capable of...
India's largest public sector insurer, LIC, has fully subscribed to a Rs 5,000-crore non-convertible debenture (NCD) issue of Adani Ports and Special Economic Zone, reported Economic Times. This move reflects Adani Ports' ongoing strategy to replace costly short-term loans with more affordable, long-term debt as part of its broader financial streamlining efforts.
Issued on Thursday, the 15-year bond carries an annual interest rate of 7.75%. This makes it one of the longest-tenure domestic bonds raised by the Adani Group in recent months. According to a report by The Economic Times, LIC is the sole buyer of this bond. LIC already holds an 8.06% stake in Adani Ports. The funds raised from this bond will be used by the company for new investments, repaying existing debt, and other business needs.
Gautam Adani's group is working to extend its loan repayment timelines and reduce borrowing costs. Due to strategic refinancing efforts, the group's average borrowing cost dropped to 7.92% in FY25, down from 9.02% in the previous year.
As reported by The Economic Times, the head of fixed income at a domestic brokerage said, 'This deal shows LIC is taking large exposure to corporate bonds.'
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 per cent, and was fully subscribed by LIC, the Adani Group company said in a statement.Debentures are long-term financial instruments that companies issue to raise more money from investors. The debentures will be listed on the BSE.The Adani Group company claimed that the NCD issue shows APSEZ's deep access to long-term capital from diversified sources at attractive pricing and significantly enhances APSEZ's debt maturity profile.
It added that the transaction highlights APSEZ's access to domestic markets for its longest tenure issuance to date, and one of the longest in Indian capital markets history.The proceeds will fund a proposed buyback of APSEZ's US Dollar bonds, pending board approval on May 31, 2025.
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