Adani Ports’ dollar bonds climb after debt buyout 2023

Bonds denominated in U.S. dollars and issued by India’s Adani Ports and Special Economic Zone increased on Monday following the company’s launch of a cash tender offer for the buyback of securities.

Adani Ports and Special Economic Zone, a subsidiary of the beleaguered Adani Group, announced on Monday that it has issued up to $130 million in dollar-denominated bonds with a 3.375% maturity in 2024.

The note gained the most among all group companies.

“The purpose of the tender offer is to partially prepay the company’s upcoming debt maturities and to communicate the company’s strong liquidity position,” the company said in a statement.

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 have been retained by the company.

Chartered Bank will act as the offer’s dealer manager.

The dollar-denominated bonds of Adani Transmission, Adani Green Energy, and Adani Electricity Mumbai traded inconsistently.

The dollar bonds of group companies plummeted, led by billionaire Gautam Adani, after U.S. short-seller Hindenburg Research accused the group on January 24 of unlawful use of offshore tax havens and stock manipulation. The organization denied all accusations.

In response to a directive from the Supreme Court, India’s market regulator is investigating Hindenburg’s allegations as well as the group’s dealings with affiliated parties.

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