APSEZL plans to raise $1 billion to repay KPCL debt in July 2020

Adani Ports and Special Economic Zone Limited (APSEZL) is set to raise about $1 billion in overseas bonds with a maturity of up to 30 years in the first long-term issuance by an Indian company since the lockdown began. The bond sale is expected in July 2020. The funds will mostly be used to conclude the nearly $2 billion deal it signed to buy a controlling stake in Krishnapatnam Port Company Limited (KPCL). APSEZL plans to repay the existing debt of KPCL using more than three-fourths of the proceeds. The rest will be used for business purposes and refinancing APSEZL’s own debt. About $826 million is likely to be used to repay the existing debt of KPCL that had taken loans from a group of about 20 bankers. APSEZL will appoint investment bankers soon for the proposed bond sale, which is likely to have two series: 10 years and either 20 or 30 years.