Adani International Container Terminal Says Dollar Bond Issue Oversubscribed 10 Times
Adani International Container Terminal Pvt. on Monday said its maiden $300 million dollar bond issuance witnessed 10 times oversubscription.
AICTPL, a joint venture between Adani Ports and Special Economic Zone Ltd. and Terminal Investment Ltd., is a container terminal operating company based out of Mundra, having an annual capacity of handling over 3.1 million twenty foot equivalent units.
"AICTPL settled its first $300 million public U.S. dollar bond issuance on Dec. 21. The issue witnessed large participation from marquee real money investors with interests coming from around 220 accounts leading to approximately 10 times oversubscription. The issue of 10 years was priced at par to yield 3.00% which is also the lowest coupon achieved by any corporate Indian issuer in the last 5 years," the company said in a statement.
It said investors were attracted by its strong shareholders, APSEZ and TIL, and their combined business strengths embedded in the company, backed by the credit quality of the issuance supported by investment grade rating affirmation by all three international rating agencies.
Barclays, Citigroup, DBS Bank, MUFG, and Standard Chartered were global coordinators, book-runners, and lead managers.
The issuance is in line to the group's capital management philosophy of re-engineering the capital structure and extending debt maturity in line to the life of asset. Our relationship with TIL is very important to us and holds the key to our strategy for making Mundra container hub for the region and AICTPL as our flagship terminal.Karan Adani, CEO & Wholetime Director, APSEZ
Successful issuance demonstrates the appreciation and acceptance of level of corporate governance at the private JV level, he said adding, the first note issuance by any port vertical JV company also paves the way and sets the benchmark for other JVs and subsidiary companies of the group to tap the capital market.
Ammar Kanaan, CEO of TIL said, "Our relationship with Adani is a classic example of a commercial partnership which is based on core principles of trust, transparency, and respect. AICTPL holds a key position in our overall portfolio of terminals across all continents and is ideally located at Mundra port enabling it to be the port of choice for cargo going to North India."