Adani Ports and Special Economic Zone (APSEZ), India’s largest private port operator, is preparing to re-enter the domestic bond market after a 17-month hiatus. The company plans to raise ₹5,000 crore (approximately $583.57 million) through a new bond issuance, which will be the largest rupee-denominated debt issue in its history. These bonds will have a maturity of 15 years, marking the longest tenor the company has ever attempted, as its previous issuances were limited to 10 years.

According to three merchant bankers, who requested anonymity due to restrictions on speaking to the media, the company has already invited bids from investors and bankers for the issuance scheduled for Thursday. If successful, this bond issuance will set a new benchmark for APSEZ in terms of both size and maturity period. It will also be the first time the company is tapping into the local bond market in 2024. The last instance of domestic fundraising was in January 2024, when APSEZ raised ₹250 crore each through five-year and ten-year bonds, with coupon rates of 8.70% and 8.80%, respectively. For the upcoming issue, the expected coupon rate is approximately 7.75%, indicating improved investor confidence and possibly more favorable market conditions.

The bond notes have received AAA ratings from leading Indian credit rating agencies—Crisil, Icra, and Care—reflecting strong creditworthiness and financial stability. On May 22, the company’s board approved a resolution to raise up to ₹6,000 crore through bond sales, which gives room for further fundraising beyond the current ₹5,000 crore plan.

This strategic move comes amid broader scrutiny of the Adani Group. Since 2023, the Securities and Exchange Board of India (SEBI) has been investigating the group and its 13 offshore investors following a report by U.S.-based short-seller Hindenburg Research. The report alleged that the group misused offshore tax havens and manipulated stock prices, which triggered a massive sell-off of Adani Group stocks. Despite this, the group has consistently denied any wrongdoing, and its stock prices have largely rebounded since the initial crash.

Further controversy arose in November when U.S. authorities indicted Adani Group Chairman Gautam Adani and other senior executives. The indictment included allegations of bribery to secure power supply contracts in India and misleading U.S. investors during capital-raising activities. The Adani Group responded strongly, denying all allegations and labeling them as baseless and unfounded.

Despite these challenges, APSEZ’s decision to issue long-term, rupee-denominated bonds shows the company’s effort to regain investor trust and demonstrate financial resilience. By locking in lower interest rates for a longer period, the company aims to manage its capital structure more efficiently. The AAA ratings will likely attract a wide range of institutional investors, including pension funds, insurance companies, and mutual funds.

In conclusion, this planned bond issuance marks a significant financial milestone for Adani Ports, reflecting both its long-term funding strategy and its attempt to strengthen its presence in the Indian debt capital markets amid ongoing regulatory scrutiny and reputational challenges.