Adani Ports and Special Economic Zone, a subsidiary of the troubled Adani Group in India, has announced a buyback program of specific debt securities on Monday. This move is aimed at partially repaying loans that are due in 2024.
Adani Ports has revealed in a filing to the stock exchange that it has issued a tender for up to $130 million in unpaid debt.
The company is taking this step to enhance investor confidence, as the Adani Group’s shares were badly affected earlier this year following a negative report by a U.S. short-seller.
The report further read, “The group will likely begin with a first tranche amounting to anywhere between $250 million and $300 million in the current quarter, and look to buy back the rest in the upcoming quarters.”
Over the last month or so, the stocks and bonds of Adani Group have made a partial recovery after the company repaid some of its debts and secured a $1.9 billion investment from boutique investment firm GQG Partners.
Adani Group’s latest corporate documents revealed that APSEZ and Adani Green Energy, two of the group’s firms, have approximately $2 billion worth of foreign currency bonds that are due to mature next year.
According to a report by ET on March 20, the group is currently negotiating with investors to refinance some of its foreign currency bonds through private placement.
Adani Ports commences a tender offer to buy outstanding senior notes due 2024 worth $130 m to partly prepay the company’s near-term debt maturities in each of the next 4 quarters.
The yields on Adani Group’s foreign bonds have recently stabilized after an initial surge following allegations of “fraud,” “mismanagement,” and “market manipulation” by US-based short-selling firm Hindenburg Research. The Adani Group has consistently denied these allegations.
