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Adani Ports attracts offers exceeding planned Dollar Bond Buyback

Oct 12, 2023

By: BlinkX Research Team

Adani Ports and Special Economic Zone, India's prominent port operator, has received offers totaling approximately $213 million for its dollar bond buyback initiative. However, the company intends to accept only $195 million, aligning with its earlier announcement. In late September, Adani Ports commenced the buyback of its 3.375% senior notes set to mature in July 2024. The company intends to continue repurchasing the outstanding notes with cash over the next three quarters.

As per data from the London Stock Exchange Group (LSEG), the outstanding amount for this bond is $520 million. Since the initiation of the buyback tender, the yield on this note has declined by about 40 basis points, currently standing at 8.43%.

In an effort to restore investor confidence following a report by U.S. short-seller Hindenburg Research, which raised concerns regarding debt and accounting, the ports and logistics company initiated a dollar bond buyback program in April. Adani Group, encompassing businesses in ports, airports, power, and property, has witnessed a collective decline of $100 billion in market value across its main seven listed firms since the release of the Hindenburg report. The Adani Group categorically refuted the allegations made in the report.