Adani Ports & SEZ plans $650 mn fund mop-up via issuing unsecured notes

The company intends to use the proceeds of the issue of notes, together with cash on hand of the company, to fund the tender offer and to redeem for cash any and all of its senior notes due in 2020

Adani Ports and Special Economic Zone on Tuesday said it will raise up to $650 million by issuing unsecured notes.

“The Finance Committee of Adani Ports and Special Economic Zone has approved the issuance of fixed rate senior unsecured notes aggregating to $650,000,000 and has approved the pricing, tenure and other terms of the notes,” it said in a regulatory filing.

The company intends to use the proceeds of the issue of notes, together with cash on hand of the company, to fund the tender offer and to redeem for cash any and all of its senior notes due in 2020.

If the tender offer and the redemption are not completed for any reason, the net proceeds of the issue of notes will be used by the company to refinance the existing indebtedness of the company, as borrowed under the external commercial borrowing guidelines, and/or other existing indebtedness with Reserve Bank of India approval, it added.

The company is proposing a tender offer to redeem any and all of its outstanding $650-million 3.50 per cent senior notes due in 2020, it added.