Adani Ports would repurchase $195 million more in bonds

Adani Ports and Special Economic Zone will settle $195 million in debt that is due in 2024 in an effort to restore investor trust after becoming the focus of a US short-seller. Gautam Adani is the conglomerate’s chief executive officer.

APSEZ said in a stock market filing that it would use its cash reserves to repurchase $195 million in bonds due in 2024.

After the repurchase, $325 million of the $520 million principle due would be remaining, it said.

According to the statement, the board of directors of the business “has approved tranche II of the tender offer to purchase for cash up to $195 million in aggregate principal amount of the outstanding 3.375 percent senior notes due 2024, which represents 30% of the notes’ principal amount,”

The corporation said in May that it will buy back 20% of the bonds’ principal amounts over the next four quarters, totaling $130 million in cash. The bonds were issued in July 2024.

The business is now recommending that it buy bonds worth up to $195 million in the second tranche of this. This is equivalent to 30% of the bonds’ $650 million principal amount. $520 million in unpaid debt remained after a $130 million repurchase in May.

According to the filing, the repurchase tender is available until October 26.

Since Hindenburg Research accused Adani Group on January 24 of accounting fraud and unlawful use of offshore tax havens for stock manipulation, the company has been working to win back investors’ trust.

The organization has refuted every accusation.

Deal managers for the offer have been hired by the business from Barclays Bank, DBS Bank, Emirates NBD Bank PJSC, First Abu Dhabi Bank PJSC, Mizuho Securities (Singapore) Pte Ltd, MUFG Securities Asia Singapore Branch, SMBC Nikko Securities (Hong Kong), and Standard Chartered Bank.

For any notes bought during the tender offer, the business will pay accumulated interest.