Adani Ports and Special Economic Zone, a subsidiary of the Adani Group, saw a boost in their U.S. dollar-denominated bonds after initiating a cash tender offer for a buyback of securities on Monday.
The company has announced a tender for up to $130 million worth of 3.375% 2024 maturity dollar-denominated bonds, which resulted in the note becoming the highest gainer among all the group companies.
This move aims to partly prepay the company’s near-term debt maturities and convey a comfortable liquidity position.
Adani Ports and Special Economic Zone has enlisted 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 as dealer managers for its tender offer.
The offer, which aims to prepay the company’s near-term debt maturities and demonstrate its comfortable liquidity position, involves up to $130 million of 3.375% 2024 maturity dollar-denominated bonds.
Adani Transmission, Adani Green Energy, and Adani Electricity Mumbai’s dollar bonds were trading with mixed results.
These group companies had previously experienced a sharp decline in their dollar bonds following accusations of improper offshore tax haven usage and stock manipulation by U.S. short-seller Hindenburg Research in a critical report released on January 24.
Despite the Adani Group denying all allegations, the market regulator SEBI is currently investigating both Hindenburg‘s claims and the group’s related party transactions as per a Supreme Court order.