Adani Ports To Repurchase $130 mn Outstanding Loan to Ease Debt

Following the start of the company’s cash tender offer for the purchase of securities, the Indian company Adani Ports and Special Economic Zone’s U.S. dollar-denominated bonds saw an increase on Monday. Adani Ports and Special Economic Zone said that it had conducted a tender for up to $130 million in dollar-denominated notes with a 3.375% 2024 maturity. The note led all of the group companies in gains.

It said in a statement that the intentions behind the tender offer are to partially prepay the company’s upcoming debt obligations and to demonstrate its stable financial condition. The Adani Group plans to repay foreign currency bonds using cash that it has on hand and money it has generated, starting with a $650 million tranche at APSEZ. They are also considering the possibility of repurchasing bonds issued by other Adani firms, and they are currently formulating a plan for dispersing their capital, a decision that might boost investor confidence throughout the world.

Barclays Bank, DBS Bank, Emirates NBD Bank PJSC, First Abu Dhabi Bank, PJSC, MUFG Securities Asia Singapore Branch, SMBC Nikko Securities (Hong Kong), and Standard & Poor’s have all been hired by the organisation. Speaking of, Chartered Bank will act as the offer’s dealer managers.

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Adani Transmission, Adani Green Energy, and Adani Electricity Mumbai’s dollar bonds all experienced uneven activity. The dollar bonds of the group companies, led by billionaire Gautam Adani, had plummeted following a scathing report by American short-seller Hindenburg Research on January 24 accused it of unlawful use of offshore tax havens and stock manipulation. The group refuted all charges.

However, in response to a Supreme Court order, India’s market regulator is investigating Hindenburg’s claims as well as the group’s relationships with linked parties.

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