Fitch Assigns Adani Ports’ Proposed USD Notes ‘BBB-(EXP)’ Rating; Outlook Negative
Fitch Ratings has assigned India-based port operator Adani Ports and Special Economic Zone Limited’s (APSEZ, BBB-/Negative) proposed senior unsecured notes of up to USD500 million an expected rating of ‘BBB-(EXP)’ with a Negative Outlook. The proposed bond is ranked pari passu with the company’s existing US dollar bonds. The proceeds will be used primarily for refinancing the early redemption of APSEZ’s US dollar bond due 2022.
The final rating is contingent upon the receipt of final documents conforming to information already received.
RATING RATIONALE
Unprecedented response to Adani International Container Terminal Private Limited s maiden USD Bond Issuance
Posted On: 2020-12-27 20:57:16 (Time Zone: Arizona, USA)
Adani International Container Terminal Private Limited (AICTPL) settled its first USD 300 mn public USD bond issuance on 21st December 2020. The issue witnessed large participation from marquee real money investors with interests coming from around 220 accounts leading to approx. 10 times oversubscription. The issue of ~10 Years was priced at par to yield 3.00% which is also the lowest coupon achieved by any corporate Indian issuer in the last 5 years.
The investors were attracted by its strong shareholders, Adani Ports and Special Economic Zone Limited (APSEZ) & Terminal Investment Limited (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 3 international rating agencies.
Fitch Rates Adani International Container Terminal’s Proposed Notes First-Time ‘BBB-(EXP)’
Fitch Ratings has assigned Adani International Container Terminal Private Limited’s (AICTPL) proposed US-dollar senior secured partially amortising notes due 2031 an expected rating of ‘BBB-(EXP)’. The Outlook is Negative.
The final rating is contingent upon the receipt by Fitch of final documents conforming to information already received as well as the final pricing and financial close on the proposed notes.
RATING RATIONALE
AICTPL benefits from its strategic position within the primary port of call in north-west India, revenue stability from long-term cargo and high operational efficiency. We regard the volatility of AICTPL’s revenue as low due to its affiliation with Mediterranean Shipping Company S.A. (MSC) through its 50% parent, Terminal Investment Limited (TIL); TIL, which is majority owned by MSC, is the world’s sixth largest container terminal operator. MSC is able