Adani Ports launches $130M debt securities buyback scheme

Adani Ports launches $130M debt securities buyback scheme

Adani Ports Debt Securities Buyback Scheme:

Adani Ports and Special Economic Zone, a subsidiary of the Indian conglomerate Adani Group, has announced a buyback program for specific debt securities as part of its efforts to partially repay loans due in 2024. In a filing to the stock exchange, Adani Ports stated that it is issuing a tender for unpaid debt worth up to $130 million. This move is aimed at boosting investor confidence, as the Adani Group’s shares took a hit earlier this year following a negative report by a U.S. short-seller.

To address its financial concerns, Adani Ports plans to begin with a first tranche of $250 million to $300 million in the current quarter and gradually buy back the rest in the upcoming quarters. The group’s stocks and bonds have experienced some recovery after the company repaid a portion of its debts and secured a $1.9 billion investment from investment firm GQG Partners.

Adani Group’s recent corporate documents have revealed that two of its firms, APSEZ and Adani Green Energy, have foreign currency bonds worth about $2 billion that are due to mature next year. To refinance some of its foreign currency bonds through private placement, the group is presently in negotiations with investors.

To partly prepay the company’s near-term debt maturities in each of the next four quarters, Adani Ports has initiated a tender offer to buy outstanding senior notes due 2024 worth $130 million. Despite the allegations of “fraud,” “mismanagement,” and “market manipulation” made by US-based short-selling firm Hindenburg Research, the yields on Adani Group’s foreign bonds have stabilized in recent times. The Adani Group has consistently denied the allegations.

About Adani Ports:

Adani Ports and Special Economic Zone Ltd, an Indian logistics and port operating company, has a network of 12 ports and terminals, including India’s first port-based SEZ at Mundra. As India’s biggest private port operator, APSEZ has a significant presence in the country’s logistics sector.

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