Unprecedented response to AICTPL's dollar maiden bond issuance
Dec 28, 2020
Ahmedabad (Gujarat) [India], December 28 : Adani International Container Terminal Pvt Ltd (AICTPL) said on Monday it has settled its first 300 million dollar public USD bond issuance.
The issue witnessed large participation from marquee real money investors with interests coming from around 220 accounts leading to 10 times over-subscription. The issue of 10 years was priced at par to yield 3 per cent which is also the lowest coupon achieved by any corporate Indian issuer in the last five years.
The investors were attracted by its strong shareholders -- Adani Ports and Special Economic Zone (APSEZ) and Terminal Investment Ltd (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.
The issuance also fits perfectly into TiL's strategy to diversify and optimise funding sources for its terminal companies around the globe. Barclays, Citigroup, DBS Bank, MUFG and Standard Chartered were global coordinators, book-runners, and lead managers.
Karan Adani, CEO and Whole Time Director of APSEZ, said the issuance is in line to the group's capital management philosophy of re-engineering the capital structure and extending debt maturity inline 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. Successful issuance demonstrates the appreciation and acceptance of level of corporate governance at the private joint venture level," he said in a statement.
The first note issuance by any port vertical joint venture company also paves the way and sets the benchmark for other joint ventures and subsidiary companies of the group to tap the capital market, said Adani.
TiL's Chief Executive Officer Ammar Kanaan said the company's 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.
"AICTPL's operational performance continues to be among the best in the portfolio of terminals owned by us. India is a strategic place for our investment and we foresee great opportunities going forward," said Kanaan.
AICTPL is a container terminal operating company based out of Mundra with an annual capacity of handling over 3.1 million TEUs (twenty-foot equivalents). With a continuous quay length of 1,460 metres and a deep draft of 17.5 metres, the terminal is equipped to handle the largest size container carriers operating in the world.
APSEZ, a part of the globally diversified Adani Group, is India's largest integrated ports and transport utility platform backed by physical assets.
TiL is the world's sixth largest container terminal operator, moving some 34 million containers per year. It is majority owned by MSC together with two of the world's largest infrastructure investors -- Global Infrastructure Partners and GIC of Singapore.
MSC is the second largest container shipping group worldwide.
