Adani Ports and SEZ's debt securities buyback Adani Ports and SEZ's debt securities buyback Adani Ports and SEZ's debt securities buyback Adani Ports and Special Economic Zone (APSEZ) said on Monday that it has started a buyback programme of certain debt securities to partly prepay near-term debt maturities and to convey the comfortable liquidity position of the company. APSEZ has commenced a cash tender offer for up to $130 million in aggregate principal amount of the outstanding 3.375% senior notes due in 2024.
The company said that it has floated a tender of up to $130 million in outstanding debts. “After the successful completion of this tender offer, the company expects US$520,000,000 notes to remain outstanding (“outstanding notes”). Post this tender offer the company intends to offer to purchase for cash approximately US$130,000,000 of the outstanding notes in each of the next four quarters,” it said.
The Adani company also stated that it might accelerate or defer this plan subject to its own liquidity position and the market conditions, as well as further terms such as pricing, which will be separately announced for each of these tranches.
APSEZ has engaged Barclays Bank PLC, DBS Bank, Emirates NBD Bank, First Abu Dhabi Bank, MUFG Securities Asia Ltd Singapore Branch, SMBC Nikko Securities and Standard Chartered as dealer managers for the tender offer. Morrow Sodali Ltd is the information and tender agent for the tender offer, the company said.
This announcement comes after the Adani conglomerate’s listed stocks lost about $114 billion in market value after the report by Hindenburg Research that accused it of stock manipulation, accounting fraud and other financial misdeeds. Gautam Adani-led group has denied all allegations.
Shares and bonds of Adani Group have regained some lost ground after it repaid some debt and attracted a $1.9 billion investment from boutique investment firm GQG Partners.