Adani Ports receives dollar bond buyback offers worth $213 million
Adani Ports and SEZ has shared that it got offers worth nearly $213 million for its dollar bond buyback program. However, it will only accept $195 million, as had been previously mentioned. The buyback started in late September for 3.375% senior notes due in July 2024, and the plan is to keep buying outstanding notes for cash over the next three quarters. Right now, the outstanding amount for this bond is $520 million, based on LSEG data.
Yield drops following buyback tender
Since the buyback tender began, the yield on the 3.375% senior notes has fallen about 40 basis points and was last seen at 8.43%. This drop in yield shows that investors are reacting positively to Adani Ports' efforts to buy back its outstanding bonds. The goal of the buyback program is to increase investor confidence and keep the company's finances in good shape.
Buyback program amid Hindenburg Research allegations
Adani Ports kicked off its dollar bond buyback program in April after a report by US short-seller Hindenburg Research raised questions about the group's debt and accounting practices. These claims caused a big drop in the group's shares, leading Adani Ports to take action to win back investor trust. The Adani Group, which works in various sectors like ports, airports, power, and property, has denied these claims.
Market impact on Adani Group companies
Since Hindenburg Research's report came out, the main seven listed firms under the Adani Group have lost a combined market value of $100 billion. The dollar bond buyback program is one way Adani Ports is trying to address investor worries and steady its financial position. As the company keeps working to buy back outstanding bonds over the next three quarters, it'll be interesting to see how this affects the group's overall market performance.
