Adani Ports & Special Economic Zone Ltd. (APSEZ), India’s largest private port operator, has raised US$125 million through a foreign currency loan from Mitsubishi UFJ Financial Group (MUFG). The funding highlights renewed confidence from global lenders in the Adani Group and forms part of its broader strategy to strengthen its balance sheet and fuel business growth.
Loan Details
The loan was structured as a bilateral deal between APSEZ and MUFG, without the participation of a lending consortium. Key terms include:
- Tenure: 4 years
- Pricing: 215 basis points above the Secured Overnight Financing Rate (SOFR), a global interest rate benchmark
Utilisation of Funds
According to sources, APSEZ intends to deploy the proceeds towards:
- Dollar bond buybacks – reducing overall debt levels and improving financial health
- Capital expenditure – upgrading and expanding port infrastructure across India
This financing structure not only improves APSEZ’s liquidity position but also underlines global lenders’ willingness to support the group despite earlier controversies.
Renewed Confidence in the Adani Group
The fundraising comes against the backdrop of strengthening investor trust in Adani Group companies. Over the past six months, the group has secured over US$10 billion in new credit facilities, equivalent to about one-third of its total debt.
Adding to this momentum, S&P Global Ratings recently revised its outlook on three Adani entities, including APSEZ, citing strong access to capital and improving financial stability. The MUFG loan reinforces this trend, positioning APSEZ as a reliable borrower in international markets.
Adani Ports at a Glance
APSEZ operates an extensive logistics and port network across India, playing a critical role in the nation’s trade and economic growth. Currently, the company:
- Operates 15 ports and terminals in 13 strategic coastal locations
- Owns 15,000 hectares of industrial land
- Manages 14.9 lakh sq. ft. of warehousing space
- Operates 11 logistics parks
Continued investments in infrastructure are expected to support long-term growth as India’s trade volumes expand.
The US$125 million loan from MUFG marks another strategic step for Adani Ports, aimed at reducing debt and expanding capacity. More importantly, it reflects growing global lender confidence in APSEZ’s financial strength and long-term vision.
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