Daijiworld Media Network – Mumbai

Mumbai, May 30: In a significant move reflecting continued investor confidence, Life Insurance Corporation of India (LIC) has fully subscribed to a Rs 5,000 crore non-convertible debenture (NCD) issue floated by Adani Ports and Special Economic Zone Ltd (APSEZ). The funds raised are aimed at refinancing short-term debt and supporting the group’s capital expenditure plans.

The 15-year bond, issued on Thursday, carries a coupon rate of 7.75%, making it one of the longest-tenure domestic bonds recently issued by the Adani Group, as reported by Economic Times. LIC, which already holds an 8.06% equity stake in Adani Ports, was the sole investor in this high-value issuance, according to sources close to the matter.

The capital infusion will be used to refinance existing liabilities, undertake infrastructure development, and meet general corporate expenses, in line with Adani Ports' ongoing strategy to optimize its debt maturity profile and reduce funding costs.

The group's average cost of funds has seen a notable decline — from 9.02% in FY24 to 7.92% in FY25, driven by a series of strategic refinancing initiatives aimed at long-term financial sustainability.

Despite facing scrutiny in recent years, the Adani Group’s ability to raise long-term capital from institutional investors such as LIC underscores the market's trust in its business fundamentals and growth roadmap.

Industry experts view LIC’s participation as a strong vote of confidence, both in the Adani Group’s financial discipline and the broader infrastructure sector’s potential.