Adani Ports and Special Economic Zone Limited (APSEZ) are in the process of buying back some specific debt securities to partly repay a near-term loan which is due in 2024. The part of Adani group has raised a tender of up to $130 million in unpaid debt.
Adani Ports will buy the 3.375% senior notes, which are due in 2024, in exchange for $130 million. The company intimidated the stock exchange by saying that the payment would be funded by the cash reserves available with the company.
The outstanding senior notes are expected to float at $520 million after the tender is over. The company said the remaining notes would be purchased at $130 million in each of the next four quarters.
Along with an aim to partly pay the debt by 2024, the company also expects to improve shareholders’ confidence after the company’s reputation and share performance saw a downfall due to the claims of the Hindenburg report earlier in January 2023. The stock is currently trading at a discount of nearly 20%, but the stock has regained its impetus, and the stocks now have a return of 4% over the period of one month.
The report filed by this sub-part of the Adani Group states that “The company may choose to either accelerate or defer this plan subject to its own liquidity position and the market conditions and further subject to the terms, including the pricing, to be separately announced for each of such tranches.”
Do you think this strategy will help the Adani group to regain its lost reputation and fund its loan amount?