Adani Transmission arm plans $100 million in bond buyback: Report

Adani Electricity Mumbai, a wholly-owned subsidiary of Adani Transmission Ltd, is likely to announce a $100 million bond buyback shortly, a Bloomberg report suggested citing people familiar with the matter.

The news came just a week after Adani group firm Adani Ports and Special Economic Zone (APSEZ) started a buyback programme of certain debt securities to partly prepay near-term debt maturities and to convey the comfortable liquidity position of the company.

According to th Bloomberg report a few banks are working with Adani Transmission to facilitate the deal. A representative from Adani Group declined to comment.

To recall, Moody's had changed the outlook for Adani Electricity Mumbai in February this year to negative. It cited the likely reduction in its funding access and reduced ability to manage any material increase in funding costs given the limited headroom in its credit metrics under Moody's base case scenario.

The fresh move is seen as another effort by the Adani group to bolster investor confidence after a Hindenburg Research report in January accused it of accounting fraud and stock manupulatio, which led to a selloff of over $140 billion in its shares and bonds. The group has repeatedly denied the US-based short-seller’s allegations.

Market regulator Sebi recently sought a six-month extension from Supreme Court to complete its probe into Hindenburg allegations. tThe SC had in its March 3 order asked Sebi to “expeditiously conclude” the investigation within two months and file a status report.