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Adani Ports and Special Economic Zone, a company under the Adani Group, is looking to prepay its near-term debts by floating a tender to repurchase the $130 million outstanding loan.
Adani Ports took this step to boost the investor's confidence after the company was impacted by Hindenberg’s report earlier this year. According to the sources, around 39% of the overall debt of the group is foreign currency bonds. Another chunk of the debt came through the term deposits of Indian and foreign banks.
Also read, LIC Improves Stake in Adani Firms as Company's Shares Recover
The short seller’s report earlier caused an overall loss of about $114 billion for the seven stocks listed by the Adani Group. The Economic Times on Monday reported that the Adani Group is planning to repurchase the foreign currency bonds that are starting with a $650 million tranche at the Adani ports unit.
The group further plans to begin the first tranche in the current quarter amounting to $250-$300 million, while it will work to buy back the remaining in the next quarter.
Adani Ports and Special Economic Zones (APSEZ), in the exchange filing, further confirmed that after the successful completion of the tender offer, they expect to still have around $520,000,000 notes outstanding.
After the initiation of this buy-back, Adani Group is looking for possibilities to buy back bonds at the other entities of Adani. They are devising strategies and are currently looking for a plan to allocate capital to gain more confidence from the investors.
- Charu Kapoor
