Lok Sabha Leader of Opposition Rahul Gandhi has raised concerns over Life Insurance Corporation of India’s (LIC) recent investment in Adani Ports & Special Economic Zone Ltd. (APSEZ), flagging it as another example of public funds being used to benefit private interests.
Citing a Bloomberg report on X, Rahul said: “The money, the policy, the premium are yours — security, convenience, benefit for Adani!”
The report says that LIC was the sole buyer in a Rs 50 billion (approximately $585 million) bond sale by APSEZ, India’s largest integrated transport utility.
On May 30, APSEZ had confirmed it had raised Rs 5,000 crore through a 15-year Non-Convertible Debenture (NCD) issue — its largest-ever domestic bond issuance. LIC fully subscribed to the offering, which was raised at a competitive annual coupon rate of 7.75%, the company said in a statement, reported PTI.
“Backed by APSEZ’s strong financials and a ‘AAA/Stable’ domestic credit rating, the issue was fully subscribed by LIC and will be listed on the BSE,” the company added. The funds are intended to support a proposed buyback of APSEZ’s US dollar-denominated bonds, pending approval at the company’s board meeting on May 31, 2025.
The company highlighted that this was not only its longest tenure domestic issuance to date, but also one of the longest in Indian capital markets history. The move extends APSEZ’s average debt maturity from 4.8 years to 6.2 years, enhancing its long-term capital structure.
“This isn't merely a financing exercise; it's a proactive execution of a meticulously developed capital management plan,” said APSEZ CEO Ashwani Gupta. “It focuses on maintaining conservative leverage, extending the debt maturity profile, lowering cost, and diversifying funding sources — all in support of our long-term goal to become the world’s largest integrated transport utility.”
19% year-on-year increase in EBITDA
In FY25, APSEZ reported a 19% year-on-year increase in EBITDA, reaching Rs 20,471 crore, bringing its net debt-to-EBITDA ratio down to 1.8x — the lowest in a decade. This performance comes amid continued capital expenditure across its network of 18 ports and terminals, including the upcoming Vizhinjam transshipment port in Kerala and a new terminal in Colombo, Sri Lanka.
The company has set an ambitious target of handling 1 billion tonnes of cargo by FY30 — more than double the FY25 figure. Beyond port operations, APSEZ is also expanding its logistics and marine services.
The investment has reignited debate over LIC’s exposure to the Adani Group, which has previously faced scrutiny from opposition leaders. Gandhi’s remarks reflect broader political criticism over the role of public financial institutions in supporting large conglomerates.
