Adani Ports and Special Economic Zone Limited (APSEZ) has taken a significant step to bolster its financial position and support its growth plans. The company's Board of Directors has given the green light for the issuance of Non-Convertible Debentures (NCDs) worth up to Rs 6,000 crore on a private placement basis.

Key Details of the NCD Issuance

Purpose of the Funds

The company has outlined several objectives for the funds raised through this NCD issuance:

1. Capital expenditure
2. Refinancing of existing debt
3. General corporate purposes

Flexible Terms

The specifics of the debentures will be determined at the time of issuance, allowing APSEZ to adapt to market conditions and its financial needs. These flexible terms include:

• Tenure
• Coupon rate
• Interest payment schedule
• Security details

Additionally, the terms may incorporate call and put options, which will be decided as and when the debentures are issued.

Implications for Adani Ports

This move by Adani Ports and Special Economic Zone Limited demonstrates the company's proactive approach to managing its financial resources. By opting for NCDs, APSEZ can potentially secure long-term funding at competitive rates, which could prove beneficial for its planned capital expenditures and overall financial strategy.

The decision to refinance existing debt through this issuance may also help the company optimize its debt structure and potentially reduce its overall cost of capital. Moreover, the flexibility to issue the NCDs in multiple tranches allows APSEZ to align the fundraising with its actual capital requirements, ensuring efficient use of financial resources.

As one of India's largest port developers and operators, Adani Ports' decision to raise substantial funds through NCDs may be indicative of its confidence in future growth prospects and its commitment to maintaining a robust financial position in the competitive ports and logistics sector.

Adani Ports & SEZ has announced a significant milestone in its expansion strategy with the groundbreaking of the Adani Logistics Park in Kalamassery, Kochi. This ambitious project, part of the 'Invest in Kerala' program, represents a substantial investment of over ₹600 crore and marks a pivotal step in transforming Kerala into a logistics and industrial powerhouse.

Project Highlights

• Scale: The logistics park will span 70 acres, featuring 1.30 million sq. ft. of integrated logistics infrastructure.
• Investment: Over ₹600.00 crore invested under the 'Invest in Kerala' program.
• Job Creation: Expected to generate more than 1,500 jobs, boosting local employment and economic growth.
• Key Sectors: Designed to serve e-commerce, FMCG/FMCD, pharmaceuticals, automotive, and retail industries.

Smart and Sustainable Features

The Adani Logistics Park is set to showcase a range of innovative and environmentally conscious features:

• EV charging stations
• Smart logistics solutions
• Digital integration for enhanced operational efficiency
• Zero-touch operations from gate entry to invoicing

These features aim to provide a seamless, end-to-end digital experience, ensuring operational transparency and real-time visibility across the supply chain.

Strategic Importance

Ashwani Gupta, Whole-Time Director & CEO of Adani Ports & SEZ, emphasized the strategic importance of the project, stating, "The Kalamassery Logistics Park marks a significant milestone in APSEZ's transformation from a ports-focused enterprise into a fully integrated transport and logistics business. As one of our largest efforts in this direction, the Park will play a pivotal role in strengthening our logistics presence in southern India, supporting local manufacturing and regional growth."

Government Support

The project has received strong support from the Kerala government. P. Rajeeve, Honorable Minister for Law, Industries and Coir, commented on the development, saying, "The Kalamassery Logistics Park reflects APSEZ's vision for smart, sustainable infrastructure that drives trade, empowers communities, and connects markets. More than a logistics hub, it is a catalyst for inclusive growth and regional transformation."

Economic Impact

The Adani Logistics Park is expected to have a significant economic impact on the region:

• Reduce transportation costs for businesses
• Enable just-in-time operations
• Enhance export capabilities
• Create opportunities for SMEs within the supply chain ecosystem

Inauguration

Kerala Chief Minister Pinarayi Vijayan is set to inaugurate this landmark project, underscoring its importance to the state's industrial development strategy.

As Adani Ports & SEZ's first logistics park in Kochi, this project represents a major step in the company's vision to become the largest ports and logistics platform in the world within the next decade. It also aligns with India's broader goals of improving its logistics infrastructure and enhancing its position in global supply chains.