Adani Ports Launches Tender to Repurchase $130 Million Outstanding Loan to Reduce Debt Load

Dollar bonds of India's Adani Ports rose as the company began a debt buyback.

On April 24, Adani Ports stated that it had released a tender for up to $130 million in outstanding debt to partly prepay the near-term loan due in 2024, according to the reports in the exchange filing.

About 39% of the group’s total debt comprises foreign currency bonds. Term loans from foreign and Indian banks hold the next biggest portion of total debt. Adani Ports and Special Economic Zone (APSEZ) has confirmed that its board members have authorised a tender suggestion for its outstanding senior notes scheduled to mature in 2024.

“The major aim of the tender offer is to prepay the firm’s near-term debt maturities partly and to deliver the comfortable liquidity position of the business. After the fruitful completion of this tender offer, the company anticipates $520,000,000 notes to remain outstanding,” APSEZ said in the exchange filing.

The Adani Group anticipates utilising its own created funds and additional cash to repurchase foreign currency bonds, starting with a $650 million tranche at APSEZ. They are also inspecting opportunities for buying back bonds at other Adani subsidiaries. They are presently determining a plan for their capital allocation, a move that can influence investor confidence internationally.

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