Life Insurance Corporation of India (LIC) has subscribed in full to Adani Ports and Special Economic Zone’s non-convertible debenture (NCD) issue worth 5,000 crore, reflecting the port operator’s ongoing strategy to refinance short-term debt with longer-term, lower-cost borrowings.
The 15-year bond, which carries a coupon rate of 7.75 percent, was issued on Thursday and represents one of the longest-duration domestic bonds issued by the Adani Group recently, according to an ET report.
LIC, which holds an 8.06 percent stake in Adani Ports, was the sole investor in this issue, according to sources familiar with the matter. The funds raised will be deployed for capital expenditure, refinancing existing liabilities, and other general corporate purposes.
The Adani Group continues to focus on extending its debt maturity profile while reducing borrowing costs. The group’s average cost of funds dropped to 7.92 percent in fiscal year 2025 from 9.02 percent the previous year, aided by strategic refinancing measures.
“This deal shows LIC is taking large exposure to corporate bonds,” said a head of fixed income at a domestic brokerage who requested anonymity. LIC’s corporate bond investments stood at 80,000 crore as of fiscal year-end 2025.
Adani Ports is actively replacing high-cost debt with longer-term instruments to ease interest expenses and improve cash flow predictability.
As of March 31, Adani Ports’ net debt was recorded at 36,422 crore, with EBITDA at 20,471 crore, resulting in an improved net debt-to-EBITDA ratio of 1.78x compared to 2.3x in fiscal year 2024. The company handled 450 million metric tonnes of cargo last fiscal, within its total capacity of 633 million metric tonnes.
Its asset portfolio includes 15 domestic ports and terminals, along with facilities in Israel, Tanzania, Australia, and Sri Lanka.
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