Adani Ports and Special Economic Zone will prepay USD 195 million of debt due in 2024 as the conglomerate helmed by Gautam Adani looks to boost investors' confidence post being targeted by a US short-seller.
In a stock exchange filing, APSEZ said it will buy back USD 195 million of bonds due in 2024 using its cash reserves.
Out of the USD 520 million principal outstanding, USD 325 million will be left after the buyback, it said.
The company board "has approved tranche II of the tender offer to purchase for cash up to USD 195 million in aggregate principal amount of the outstanding 3.375 per cent senior notes due 2024 which represents 30 per cent of the principal amount of the notes," it said.
In May, the company had bought back its July 2024 bonds for cash USD 130 million in aggregate of the principal amount and stated that it would buy back 20 per cent of the principal amount of the bonds in each of the next four quarters.
In the second tranche of this, the company is now proposing to purchase up to USD 195 million of bonds. This represents 30 per cent of the principal amount of the bonds (USD 650 million). After USD 130 million buyback in May, USD 520 million remained outstanding.
The buyback tender is open till October 26, the filing said.
Adani Group has been attempting to rebuild investors' confidence since Hindenburg Research in a January 24 report accused it of accounting fraud and improper use of offshore tax havens for stock manipulation.
The group has denied all allegations.
The company has engaged Barclays Bank, DBS Bank, Emirates NBD Bank PJSC, First Abu Dhabi Bank PJSC, Mizuho Securities (Singapore) Pte Ltd, MUFG Securities Asia Singapore Branch, SMBC Nikko Securities (Hong Kong) and Standard Chartered Bank to serve as deal managers for the offer.
The company will pay accrued interest, in respect of any notes purchased in the tender offer.