Adani Airport Holdings Bond Offers 8.15% YTM for 28 Months: Is it Worth Considering?

Bonds let you lend money to a company in exchange for fixed, scheduled payments, instead of buying its shares. This bond is issued by Adani Airport Holdings Limited, the company that runs the airport business of the Adani Group. With over two years left until maturity, it offers a fixed yield of 8.15%, paid out every quarter. The credit rating of this bond is AA-. Let’s look at what this bond involves and what kind of returns it can offer.

Before knowing about the bond and its returns it is important to understand what the credit rating AA- means, as this is the initial crucial step before investing in any bond.

What is AA- Credit rating?

This rating reflects how safe the bond is considered by rating agencies. AA- is a high investment-grade rating, meaning the risk of default is considered low, though not zero. 

About Adani Airport Holdings Limited

Adani Airport Holdings Limited (AAHL) is a 100% subsidiary of Adani Enterprises Limited, set up to manage and hold the airport business of the Adani Group. AAHL holds a 49% stake in six regional airports, Ahmedabad, Lucknow, Mangaluru, Jaipur, Guwahati and Thiruvananthapuram, with the remaining 51% held directly by Adani Enterprises. These airports operate under 50 year concession agreements as part of what is called the Restricted Group. AAHL also holds close to a 73% stake, directly and indirectly, in Mumbai International Airport Limited, which in turn owns a 74% stake in Navi Mumbai International Airport Private Limited. 

Bond Details

• Issuer: Adani Airport Holdings Ltd.
• Bond price, as listed: ₹1,01,245.75
• Minimum investment: ₹1,01,245.75
• YTM (Yield to Maturity): 8.15%
• Coupon rate: 8.45%
• Tenure left: 28 months
• Date of maturity: 12 February 2029
• Interest payout: Quarterly
• Credit rating: AA-
• Bond type: Senior
• Principal payout type: Bullet, meaning the full principal is paid back at maturity in lumpsum 

Also Read: BBB+ Rated Bonds: 3 Corporate Bonds Offering Up to 11.80% YTM With Monthly and Quarterly Interest

Returns You Will Get After Investing in this Bond

Before looking at the returns, here is a quick explanation of what YTM and coupon rate means in bond investing.

• YTM (Yield to Maturity): This is the actual return you can expect each year if you buy the bond now and hold it until it matures. It accounts for the bond’s current price, not just its coupon rate.
• Coupon rate: This is the fixed interest rate the bond promises on its original face value. It stays the same throughout the bond’s life, and is not always the same as the YTM.
  

Since this bond has 28 months left, your money is locked in for a little over two years. Here is what you can expect to earn on different investment amounts, based on the bond’s current price and 8.15% YTM.

Note, that since each unit is priced at ₹1,01,245.75, you cannot invest an exact round figure like ₹2 lakh or ₹5 lakh. The table shows the closest amount you can actually invest, based on whole units.

Unlike a bond that pays interest once a year, this one pays out every quarter, so each unit gives you roughly ₹2,100 to ₹2,130 every three months until maturity, with the final interest payment along with the full ₹1,00,000 principal returned on 12 February 2029. You can invest in this bond through platforms and apps like Groww, GoldenPi and other eligible platforms.

Who Can Consider This Bond?

This bond offers a fixed, predictable 8.15% return paid out every quarter over a little more than two years, making it suitable for investors looking for steady, medium-term income rather than quick, short-term gains. However, its high AA- rating is not risk-free, and unlike bank fixed deposits, these returns are not guaranteed. The minimum investment here is also higher, at over ₹1 lakh. Additionally, your money will be locked in until maturity unless you sell the bond early on the exchange. Investors should compare this option with similar tenured products and align it with their financial goals before investing.