CNA – India’s Adani Ports and Special Economic Zone, a group company of the beleaguered Adani Group, said that it started a buyback programme of certain debt securities to prepay part of its loans due in 2024 yesterday.
Adani Ports has floated a tender of up to USD130 million in outstanding debt, it said in an exchange filing, as it seeks to boost investor confidence after the group’s shares were pummelled earlier this year by a United States (US) short-seller’s report. Led by billionaire businessman Gautam Adani, the group’s seven-listed stocks have lost about USD114 billion in market value since a January 24 report by Hindenburg Research accused it of improper use of offshore tax havens and stock manipulation. The group denied all allegations.
The Economic Times (ET) first reported that the Adani Group plans to buy back foreign currency bonds of various group companies yesterday. The buyback will start with a USD650 million tranche at its ports unit, the report said, citing sources. The group will likely begin with a first tranche amounting to USD250 million to USD300 million in the current quarter and look to buy back the rest in the upcoming quarters, the report said.
Adani Group declined to comment on the ET report.
Shares and bonds of Adani Group have regained some lost ground over the past month or so after it repaid some debt and attracted a USD1.9 billion investment from boutique investment firm GQG Partners.
The US dollar-denominated bonds issued by Adani Ports rose after the company floated a tender of 3.375 per cent 2024 maturity dollar bonds.
