Adani Ports' bond sale draws LIC interest on India market return, sources say
MUMBAI, May 29 (Reuters) - Adani Ports and Special Economic Zone (APSE.NS), opens new tab, India's largest private port operator, has placed its longest-tenor debt with state-run Life Insurance Corporation of India (LIFI.NS), opens new tab, two sources familiar with the matter said on Thursday.
The company raised 50 billion rupees ($585.33 million) through the sale of bonds maturing in 15 years at 7.75% annual coupon and the debentures were fully bought by LIC, the sources said, declining to be identified as they are not authorised to speak to the media.
The bonds were issued at the lowest spread over the corresponding government bond yield in the last seven years.
LIC and Adani Ports did not immediately respond to Reuters emails seeking comments.
The issue marked Adani Ports' largest rupee-denominated bond and its first market return since January 2024, after Adani group companies pulled back following U.S. short-seller Hindenburg Research's 2023 allegations of governance lapses.
Adani Group has denied those allegations.
Adani Ports has outstanding bonds worth around 62.50 billion rupees as of end-April, according to notes from rating agencies.
Holding around 54 billion rupees of debt, LIC was the largest holder of bonds of the company as of January 2024, according to an information memorandum of its January 2024 debt issue.
Adani Ports raised 2.5 billion rupees each via five- and 10-year bonds at coupons of 8.70% and 8.80%, respectively, in January 2024. Last week, its board approved raising up to 60 billion rupees through bond sales, with the notes rated AAA by Crisil and Care.
With the Adani Ports issue completed, more group companies are likely to tap local debt market, especially as yields are set to decline further due to policy rate cuts and surplus liquidity, two bankers said, declining to be named since they are not authorised to speak to media.
($1 = 85.4225 Indian rupees)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Sun
25 minutes ago
- The Sun
Japan's moon lander ‘crashes AGAIN' in second botched mission as spaceship goes silent just moments before touchdown
A JAPANESE spacecraft attempting a touchdown on the moon has crashed into the surface, the space company said. The unmanned Resilience Moon Lander, from private Japanese astro company ispace, has been declared a failure for a second time. 2 2 Friday's flop follows the failure of the company's first attempt at a moon landing in 2023. Resilience had difficulty measuring the distance between itself and the moon, its makers said, so it careered into the surface going too fast. Following the disappointment, CFO Jumpei Nozaki said: "We're not facing any immediate financial deterioration or distress because of the event." Ispace will now have to wait years before taking another shot at a lunar landing. However, the country remains committed to the mission - and a number of private companies there are looking at moon exploration as a business opportunity. Tokyo-based ispace had hoped to join US firms Intuitive Machines and Firefly Aerospace in making successful commercial moon landings. It comes amid a global race that includes state-run lunar missions from China and India. .
Reuters
29 minutes ago
- Reuters
India's IndusInd Bank rises as RBI deputy says things should settle soon
BENGALURU, June 6 (Reuters) - Shares of India's IndusInd Bank ( opens new tab rose 3% on Friday after a deputy governor at the country's central bank said "things should soon settle down" at the lender, which has grappled with accounting lapses.
The Independent
an hour ago
- The Independent
HSBC's Sir Mark Tucker to leave in September for return to insurer AIA
Banking giant HSBC's outgoing chairman Sir Mark Tucker will step down at the end of September to take up the same post at Hong Kong-based insurer AIA, the bank has announced. It was announced last month that Sir Mark would retire by the end of 2025, ending an eight-year tenure at the helm of the bank's board. His departure date comes after AIA confirmed his appointment as non-executive chairman on October 1 – a move that sees him return to the group he led as chief executive for seven years until 2017. HSBC is still searching for his permanent replacement, but Brendan Nelson, head of the group's audit committee, will take on the role on an interim basis. Sir Mark will remain as a strategic adviser to the group's chief executive Georges Elhedery and the board as the hunt for his successor continues. Ann Godbehere, senior independent director who is leading the search, said the bank was 'making progress' on the succession process. On his appointment at AIA, Sir Mark said: 'I am deeply honoured and excited to be taking on the role of independent chairman of one of the world's largest insurance companies. 'AIA plays a critical role in protecting the financial wellbeing of millions of families across Asia.' At the insurer, he replaces Edmund Sze-Wing Tse, who retires after a career spanning more than six decades with the business. Sir Mark Tucker took on the role of chairman at HSBC in October 2017 and has been at the helm of one of the world's biggest banks during crises including the Covid pandemic, the rising cost of living, and growing tensions between the US and China. Under the leadership of Mr Elhedery, the bank is undergoing a major overhaul as it seeks to slash costs by 1.5 billion US dollars (£1.1 billion) by the end of 2026. HSBC has also faced mounting pressure from one of its biggest shareholders, Chinese insurer Ping An, in recent years to split the bank in two and create a separate Asia-headquartered business. A plan to break up the bank was rejected by shareholders last year, but the restructuring announcement initially prompted some speculation that it could eventually fracture. Sir Mark said on announcing plans to leave last month that it had been a 'great honour and privilege to lead HSBC as chair'.
