The Congress on Friday ridiculed the Modi government over reports of the Life Insurance Corporation of India (LIC) subscribing to Adani Ports and Special Economic Zone’s non-convertible debenture worth Rs 5,000 crore, reflecting the port operator’s ongoing strategy to refinance short-term debt with longer-term and lower-cost borrowings.

“Modani Hai to Mumkin Hai, “Congress general secretary Jairam Ramesh mockingly said in a post on social media handle X, asserting “it is really no surprise that LIC is the only company to subscribe to the entire 5000 crore rupee bond issue of the private port company that is a monopoly.”

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As per media reports, the LIC has fully subscribed to Adani Ports’ Rs 5,000 crore NCD issue, supporting their strategy to replace short-term debt with longer-term, lower-cost options.

The 15-year bond, with a 7.75 percent coupon rate, will fund capital expenditure and refinance existing liabilities.

The LIC, which holds an 8.06 percent stake in Adani Ports, was the sole investor in this issue and the funds raised will be deployed for capital expenditure, refinancing existing liabilities, and other general corporate purposes, the report said quoting sources.

As per reports this was its largest ever rupee-denominated bond issue and also its first 15-year bond sale.

“There was only one bid from LIC and it was a pre-approved, privately negotiated transaction. No other bids were received, and since it wasn’t a market-based issuance, there was no green shoe option either,” the report said, quoting a source aware of the development, adding that it’s possible that the company was concerned about having to offer a higher coupon rate had it come to the broader market.