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Adani Ports & Special Economic Zone
Why buy this bond?
When reinvesting the coupons, the yield is 7.5% pa against the original initial investment.
Attractive income with regular semi-annual income payment
Bonds are liquid and can be converted into cash at any time.
We perceive bonds as non- defaultable
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Adani Ports and Special Economic zone limited
Adani Ports and Special Economic Zone is the operator of one of the largest networks of ports and special economic zones in India. He belongs to the richest Indian family, Adani. The wealth of the head of this family is estimated at 60 billion USD.
The bonds have a BBB- rating, so they are very safe.
The company's sales and profit have been growing for several years in a row, and nothing should change in the following years.
Complete information
Issuer
The name of the issue
Adani Ports and Special Economic Zone
Adani Ports and Special Economic Zone, 5% 2Aug2041
Currency
US dollar $
Emission volume
450,000,000 USD
The face value of the bond
$1000
Indicative market price
$816 USD
Discount
184 USD
Coupon from face value
5% p.a
Coupon payout frequency
Due date
semi-annual salary
8/2/2047
100% liquidity
Yes
Minimum volume
$200,000
Yield to Maturity
6.84% pa - before taking into account all costs
Preferred scenario
23% pa - before taking into account all costs
Rating
BBB- (Fitch)
Hierarchy of debt
Senior uninsured
Reinvestment of coupons results in a yield of 7.5% pa against the original initial investment.
Preferred scenario + 23% for two years + 2x 5% coupon.
You can find the prospectus for the bonds here:
5.00 per cent. Senior Notes due 2041 - Prospectus
Non-defaultable annuity
"alternative to investment in rental housing"
We perceive the bonds as non-defaultable , similar to, for example, the bonds of the Boeing company. The bonds are liquid and can be converted into cash at any time. No need to hold them to maturity.
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Economy
As can be seen below, the company is thriving economically. Thanks to the growing economy, we expect ratings to rise in the future, which will have a positive effect on the bond price.
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Overall summary
Adani Ports and Special Economic Zone bonds are another high-quality asset that will bear a steady return. It is not burdened by Covid, on the contrary, Covid has helped ship transport quite a bit.
This type of bond can also be taken as a hedge, i.e. a model where 30-year Toyota bonds in Japanese yen carry a yield of 0.1% p.a.
However, everything points to the fact that Japan is 20 years ahead of monetary stimulus and has never been able to raise rates, and most likely the same model awaits the EU and the US.