Adani Ports and Special Economic Zone Limited (APSEZ), one of India's largest port operators, has received a positive outlook upgrade from S&P Global Ratings and reported robust performance in its cargo handling operations for July, despite facing weather-related challenges.

S&P Global Ratings Upgrade

S&P Global Ratings has upgraded Adani Ports' outlook to 'BBB-/Positive'. The rating agency has revised its assessment of the port operator's creditworthiness to a positive outlook, indicating improved financial stability and growth prospects for the company.

Cargo Volume Growth

APSEZ handled a total cargo volume of 40.20 Million Metric Tonnes (MMT) in July, marking an 8% year-over-year increase. This growth was primarily driven by the container segment, which saw a significant 22% year-over-year rise.

Year-to-Date Performance

For the year-to-date period through July, APSEZ's performance has been even more impressive:

• Total cargo handled: 160.70 MMT, up 10% year-over-year
• Container segment growth: 20% year-over-year

Logistics and Rail Operations

The company's logistics arm also showed strong growth:

• July rail volumes: 60,940 TEUs (Twenty-foot Equivalent Units), up 17% year-over-year
• Year-to-date rail volumes: 240,419 TEUs, up 15% year-over-year

GPWIS Performance

General Purpose Wagon Investment Scheme (GPWIS) volumes showed mixed results:

Weather Impact

APSEZ noted that adverse weather conditions during the last week of July affected operations at its West Coast facilities and Krishnapatnam port. The company expects these weather-related impacts to continue into August, potentially affecting the next month's performance.

Management's Disclosure

In a filing to the stock exchanges, Kamlesh Bhagia, Company Secretary of APSEZ, provided these operational updates, demonstrating the company's commitment to transparency in reporting its performance to investors and stakeholders.

Despite the challenges posed by adverse weather conditions, Adani Ports and Special Economic Zone Limited's overall performance in July and the year-to-date period reflects the company's resilience and strong position in India's port and logistics sector. The significant growth in container volumes, in particular, highlights the company's ability to capitalize on the increasing demand for containerized cargo handling services. The positive outlook upgrade from S&P Global Ratings further underscores the company's improving financial health and market position.

Adani Ports & SEZ (APSEZ) has released the early results of its tender offers for senior notes, revealing a mixed response across three tranches with a combined purchase target of up to $450 million.

Oversubscription in 2027 Notes

The company's tender offer for the 4.20% Notes due 2027 saw significant interest from noteholders. APSEZ received valid tenders totaling $178.30 million against a maximum acceptance amount of $125 million. Due to this oversubscription, the company will implement a prorated acceptance at 65.46% for this tranche.

Mixed Response for Other Tranches

For the 4.0% Notes due 2027, APSEZ reported receiving $154.20 million in tender offers, falling short of the $200 million maximum acceptance amount set for this tranche. Similarly, the 4.375% Notes due 2029 attracted $105.20 million in tenders, also below its $125 million maximum acceptance limit.

Timeline and Management

The early settlement date for these tender offers is anticipated to be around August 1, 2025. Noteholders still have time to participate, as the tender offers are set to expire on August 13, 2025.

Financial Advisors

APSEZ has engaged Cantor Fitzgerald & Co. and Jefferies Singapore Limited as joint dealer managers to oversee this transaction, ensuring a smooth process for both the company and participating noteholders.

Implications

This tender offer demonstrates APSEZ's proactive approach to managing its debt structure. The varied response across different note tranches provides insights into investor sentiment and market conditions for the company's debt instruments.

The oversubscription of the 4.20% Notes due 2027 suggests strong investor interest in this particular tranche, possibly due to its terms or market positioning. Conversely, the undersubscription of the other two tranches might indicate differing investor preferences or market dynamics for these specific notes.

As Adani Ports and Special Economic Zone Limited continues to navigate its financial strategies, the outcome of these tender offers will play a role in shaping its debt profile and financial flexibility moving forward.