Adani Ports and Special Economic Zone (APSEZ), a commercial ports operator in the country, is looking to raise funds from the dollar bond market. S&P Global Ratings has assigned its ‘BBB-‘ long-term issue rating to the senior unsecured notes proposed by APSEZ.
“APSEZ intends to use the proceeds from the issuance to refinance debt at the company and its subsidiaries, including debt at Krishnapatnam Port, which APSEZ expects to acquire in July 2020. The size of the proposed issuance is within our base case for the current rating level,” S&P Global Ratings stated. At the same time, Fitch Ratings has assigned the firm’s proposed senior unsecured notes of up to $1.25 billion an expected rating of ‘BBB-(EXP)’, with a negative outlook.
“The firm is doing roadshows right now and we can expect the bonds to be priced in a couple of days. The issue could have a tenor of 10 years or longer,” said a banker, aware of the deal.
Meanwhile, Softbank Group’s SB Energy Investments is trying to price its five-year bonds on Monday. According to Bloomberg, the firm’s bonds have received an initial price target of 6.75%.
Indian issuers have raised close to $9 billion from the overseas bond market so far in 2020. The pace of fund raising was strong in the first three months of 2020, when Indian firms raised a record $8 billion from the overseas bond market. However, the Covid-19 crisis has put brakes on the fund-raising activity.
REC and UPL have hit the dollar bond market after the Covid-19 crisis happened. Exim Bank and Adani Electricity Mumbai raised a billion dollar, each, earlier this year from the foreign currency bond market. Other entities that hit the overseas bond market this year include Manappuram Finance, Shriram Transport, Future Retail, Power Finance Corporation, IRFC, etc.