The Life Insurance Corporation of India (LIC) completely subscribed for a 15-year non-convertible debenture (NCD), securing Rs 5,000 crore, the largest domestic debt raise to date for Adani Ports and Special Economic Zone Ltd (APSEZ). The offering, which will be listed on the BSE and has a 7.75% annual coupon, is the longest-tenure rupee bond in the company’s history and among the longest in the Indian debt market.
This most recent action marks a significant turning point in APSEZ’s larger financial plan to optimize its capital structure. A possible buyback of current US dollar bonds is the goal of the money raised, subject to board approval on May 31, 2025.
By extending its average loan term from 4.8 to 6.2 years with this issue, APSEZ has achieved a more resilient and balanced financial profile. The company views this bond offer as a powerful confirmation of its creditworthiness and smart financial planning. It still has a ‘AAA/Stable’ rating from leading domestic rating agencies, such as CRISIL, ICRA, CARE, and India Ratings.
APSEZ has pledged to more than double its freight handling to 1 billion tons by FY30 as part of its aggressive growth strategy. As it expands beyond basic port operations, the company is also increasing investments in its marine services and logistics. Its debt structure’s increasing maturity and stability should give it the financial flexibility it needs for this kind of growth, particularly in sectors that require ongoing capital investment and technical advancement.
With the backing of patient capital and a stable cost of funds, APSEZ is positioning itself to pursue both organic growth and strategic acquisitions, while ensuring liquidity buffers for future innovation. The company sees the current bond issuance not just as a funding activity but as a foundational step in executing its long-term vision.
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