lic (Life Insurance Corporation of India), the largest public sector insurance company in India, has completely bought the non-convertible debenture issue of Rs 5,000 crore of adani Ports and Special Economic Zone. In simple language, lic has given a loan of 5 thousand crores to adani Ports.

The company issues NCD to meet its capital requirements and in return pays interest to the investor. This is for a limited period, after the end of which the investor gets his capital amount back.

All money will have to be returned to lic after 15 years

This bond is for 15 years, on which an interest of 7.75 percent will have to be paid annually. That is, after 15 years, adani Ports will have to return the entire Rs 5,000 crore to lic and then the company will pay annual interest at the rate of 7.75 percent. The company will use this amount to repay its old loan and take the business forward.

According to a report by The Economic Times, lic already has an 8.06 percent stake in adani Ports. adani Group is currently trying to extend the loan repayment deadline and take loans at lower interest rates. Due to these efforts, their average interest rate came down to 7.92 percent in FY25, which was 9.02 percent last year. lic had invested Rs 80,000 crore in corporate bonds by the end of FY25.

adani Ports has this much debt

At the same time, adani Ports had a debt of Rs 36,422 crore as of march 31. While Ebitda was Rs 20,471 crore. This reduced its net debt-to-EBITDA ratio to 1.78 times, which is better than 2.3 times last year. adani Ports and Special Economic Zone aims to more than double its cargo handling to 1 billion tonnes by FY 2030. Due to this, the company is increasing investment in logistics and marine services.

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Sudha Subbiah

31/05/2025 02:03 PM