Adani Ports and Special Economic Zone on April 24 started the first debt buyback programme since billionaire Gautam Adani's company was targeted by a US short-seller in January.
Adani Ports and Special Economic Zone floated a tender to buy back as much as USD 130 million of its July 2024 bonds and similar amounts in each of the next four quarters, it said in an exchange filing, as it looks to regain investor confidence by showing that its liquidity position is comfortable.
Shares of Adani group companies pummelled after Hindenburg Research in a January 24 report accused it of accounting fraud and improper use of offshore tax havens for stock manipulation. The group has denied all allegations.
Adani Ports and Special Economic Zone said it had started a buyback programme for its 3.375 per cent 2024 maturity dollar-denominated bonds. "The purpose of the tender offer is to partly prepay the company's near-term debt maturities and to convey the comfortable liquidity position," it said in a statement. The company has engaged 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 Chartered Bank to serve as dealer managers for the offer.
"Adani Ports and Special Economic Zonetoday announced that it has commenced a tender offer to purchase for cash up to USD 130 million in aggregate principal amount of the outstanding 3.375 per cent Senior Notes due 2024," the statement said. "After the successful completion of this Tender Offer, the company expects USD 520 million Notes to remain outstanding." Post this tender offer the company intends to purchase for cash approximately USD 130 million of the Outstanding Notes in each of the next four quarters.
"The company may choose to either accelerate or defer this plan subject to its own liquidity position and the market conditions and further subject to the terms, including the pricing, to be separately announced for each of such tranches," it said. The company intends to fund the Notes accepted for purchase in the Tender Offer from its cash reserves. The tender offer ends on May 22, 2023. The maximum acceptance amount is up to USD 130 million. In addition, the company will pay accrued interest, in respect of any Notes purchased in the tender offer from, and including, the last interest payment date.
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Adani Ports launches debt securities buyback programme for USD 130 million.