Adani Ports to raise US$750 mn via unsecured notes @ annual coupon rate of 4.375%

AHMEDABAD-GANDHINAGAR | MUMBAI | RAJKOT – In a regulatory update submitted to the companies on Thursday, Ahmedabad headquartered Adani Ports and Special Economic Zone Ltd said of the company board having approved fund raising via unsecured notes aggregating to US$ 750 million.

The tenure of notes will be for 10 years starting from July 3, 2019 till July 3, 2029, at an annual coupon rate of 4.375% payable bi-annually in every month of January and July till 2029 starting from 2020, further getting it listed on Singapore Exchange Securities Trading Ltd, the statement read.

The proposal was approved in a 40 minutes late-night meeting scheduled on June 26th, 2019 – Wednesday from 11:10pm to 11:50pm and the update of same meeting had hit the Indian Bourses after 29 minutes of the meeting was over at 00:19 hrs IST on June 27th, 2019 – Thursday.

Communication addressed to the Indian Bourses said that, This is in furtherance to our letter dated June 21, 2019.

We are pleased to inform that the Finance Committee of Adani Ports and Special Economic Zone Limited (the “Company”) has approved the issuance of fixed rate senior unsecured notes (the “Notes”) aggregating to US$ 750 million and has approved the pricing, tenure and other terms of the Notes.

The Company intends to use the proceeds primarily for capital expenditure, including on-lending to subsidiaries for capital expenditure purposes, and the remainder for repaying existing indebtedness as permitted under the applicable laws including the external commercial borrowing guidelines and/or if required, approvals of the Reserve Bank of India.

The Company is rated Baa3 (Stable) by Moody’s, BBB- (Stable) by S&P and BBB- (Stable) by Fitch and expects the same ratings for the Notes, which are expected be listed on the Singapore Exchange Securities Trading Ltd and shall be for tenure of 10 years with settlement date on July 3, 2019 and maturity date falling on July 3, 2029, the statement said.

Interest on the notes is payable at 4.375% per annum, payable semi-annually on January 3 and July 3 of each year, commencing from January 3, 2020, the statement read.

Barclays Bank PLC, Citigroup Global Markets Ltd, DBS Bank Ltd, Emirates NBD Bank PJSC, JP Morgan Securities PLC, Merrill Lynch (Singapore) Pte Ltd., Mizuho Securities Asia Ltd, MUFG Securities Asia Ltd and Standard Chartered Bank are the joint bookrunners & joint lead managers to the issue.

Whereas The Bank of New York Mellon is acting as trustees and agency, to the issue.

The company board has approved the drafts of Subscription Agreements inked between the company as issuer and joint bookrunners as well as joint lead managers, as well the Trust Deed and Agency agreements inked between the company, trustee and agency.

For more details, please click the link, given here : https://buff.ly/2xhix1W


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