Ahmedabad (Gujarat) [India], July 8 (ANI): Adani Ports and Special Economic Zone (APSEZ) Ltd has approved the issuance of US dollar-denominated foreign currency bonds to raise nearly $1.25 billion (about Rs 9,357 crore).
They will be issued in one or more tranches overseas and listed in any one or more stock exchanges in India or overseas, the company said in a statement.
"The proceeds of bonds will be used to repay its existing indebtedness and the indebtedness of its subsidiaries and other permissible end uses," it said.
APSEZ Ltd said the bonds will be issued on a private placement basis or otherwise to eligible persons, entities, bodies corporate, companies, banks, financial institutions and any other categories of eligible investors permitted to invest under applicable laws.
Reports say the proceeds will be used to part-fund the acquisition of Krishnapatnam Port Co Ltd (KPCL).
On January 3, APSEZ had signed an agreement to buy a 75 per cent stake in Krishnapatnam Port for an enterprise value of Rs 13,572 crore comprising equity component of Rs 7,360 crore and debt of Rs 6,212 crore.
KPCL runs a private deep-water port at Krishnapatnam in Andhra Pradesh's Nellore district. It is the largest port in Andhra Pradesh and the second-largest private port in India after Mundra by volumes handled.
The deal is APSEZ's biggest acquisition yet in India's port sector in terms of value and size and helps it build scale in an industry that is dominated by the 12 government-owned ports. (ANI)