Adani Group's road to recovery post Hindenburg attack: Adani Ports and SEZ to repay $130 million debt

Adani Ports and Special Economic Zone (APSEZ), said on Tuesday that it would pay $130 million of its debt early. The company offered nearly $413 million worth of debt for early payment. 

The company had floated a tender of up to $130 million of 3.375 per cent dollar-denominated bonds last month set to mature in 2024. The company, last month, also said that it stated a buyback programme of certain debt securities to partly prepay near-term debt maturities. It had commenced a cash tender offer for up to $130 million in aggregate principal amount of the outstanding 3.375 per cent 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 had said last month.

This move is aimed to boost investor confidence after the shares of the group plummeted following the release of Hindenburg Research’s damning report. 

Since the release of the report on January 24, the Adani Group’s seven listed stocks have lost about $114 billion in market value. The conglomerate, led by billionaire Gautam Adani, was accused of accounting fraud, stock manipulation and other financial misdeeds. While the company and Adani came on record to deny the allegations, the stocks still took a hit. 

Earlier this month, APSEZ completed the sale of its port in Myanmar for $30 million, which is lower than its investment in the project. The sale was announced in May 2022 after a military coup in Myanmar saw a crackdown on mass protests, drawing US sanctions. The deal was delayed due to challenges in meeting conditions for the completion of the project. It had initially planned to complete the exit between March and June 2022. The company had invested $127 million in the project, including a $90 million upfront payment to lease land.

(With Reuters inputs)

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