India's largest private port operator Adani Ports and Special Economic Zone is seeking bids on May 29 to raise Rs50bn (US$584m) from 15-year bonds at 7.75%, according to market sources.

This is the largest deal and longest tenor by the issuer in the rupee market, bankers said. Long-term investors such as Life Insurance Corp are heard to be participating in the deal given the long tenor of 15 years.

Crisil and Care have assigned AAA ratings to the secured notes.

The issuer has asked investors to place bids on BSE's electronic bidding platform from 10:30am to 11:30am India time.

The coupon will step up by 25bp if the rating falls below AA– and, if it falls below A, the debenture holders reserve the right to mandatory pre-payment of outstanding principal and accrued interest. 

The issuer recently received board approval to raise up to Rs60bn from bonds.

The non-convertible debentures will be raised for capex, refinancing of existing debt and general corporate purposes.

In January 2024, the company raised Rs5bn via a private placement comprising Rs2.5bn five-year bonds priced at 8.7% and Rs2.5bn 10-year notes at 8.8%.

Source: IFR