Adani Group’s Australian port company raises $500 million

MUMBAI: The Adani Group-controlled Adani Abbot Point Terminal, which owns a coal terminal in Australia, has raised about $500 million from the Australian market by issuing 5 year bonds, people with direct knowledge of the deal told ET.

The bonds that have been sold to a clutch of local institutional investors of Australia carries a spread of 225 basis points over ASW. Australian benchmark rate or ASW is akin to the benchmark Libor rate in the European market.

"The company was able to raise money successfully in a not so liquid Australian bond market, a mark of a good quality asset," a person with direct knowledge of the deal said. "The pricing is very tight and was controlled by the issuer," the person added.

Debt laden Adani group was looking at raising around $1.2 billion from the market. "The company will now look at raising bank debt and medium term loans on the Australian asset," another person with knowledge of the development said.

Deutsche Bank AG, Westpac Banking Corp and Commonwealth Bank of Australia were the managers of the bond issue.

Australian bond market is under-developed and has not seen such high value issuances in the past.

Adani Ports spokesperson declined to comment.