ICRA assigns AA+ rating to Adani Ports on strong business profile

India's largest private port operator Adani Ports and Special Economic Zone has moved one step closer to returning to the corporate bond market, as it has received ratings earlier this week for a planned debt issue.

Rating agency ICRA has assigned AA+ rating for 100 billion rupees ($1.20 billion) of bonds of the company, while India Ratings and Research has assigned AA+ rating to bonds worth 50 billion rupees, according to ratings notes.

While ICRA said its rating factors in the company's strong business profile, India Ratings said it continues to take a consolidated view of the company and its subsidiaries.

Earlier in December, Reuters reported citing sources that Adani Ports is mulling a fundraise of up to 10 billion rupees from the domestic bond market in the last quarter of the financial year. This would be the company's first bond issue since October 2021.

Earlier in the month, the company had said it will raise up to 50 billion rupees by issuing bonds through private placements in one or more tranches.

Adani Ports, which operates 13 ports and terminals in the country, said a majority of the funds issued will be used for refinancing of existing debt.

Its board will meet on Jan. 3 to approve the bond issue.

Adani Ports had last tapped the bond market in October 2021, when it had raised 10 billion rupees at a coupon of 6.25%.

Among Adani Group companies, Adani Ports, Adani Green Energy, Adani Power and within Adani Enterprises, airports and roads may tap the domestic bond market in near future, Adani Group Chief Financial Officer Jugeshinder Singh had said this month.

In August, Reuters had reported Adani Airport Holdings and Adani Ports may tap the market first among the group.