Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Companies / News/  Adani Ports begins buyback of $650 million bonds due next year
BackBack

Adani Ports begins buyback of $650 million bonds due next year

Adani Ports is buying back the $1,000 bonds for $1,009.5 apiece
  • The plan under which Adani Ports is buying back $1,000 bonds at $1,009.5 each will close on 24 July, a statement said
  • Adani is also issuing new bonds of at least $650 mn, the proceeds of which will be used for buyback of the bonds due in 2020. (AFP)Premium
    Adani is also issuing new bonds of at least $650 mn, the proceeds of which will be used for buyback of the bonds due in 2020. (AFP)

    NEW DELHI : Adani Ports and Special Economic Zone Ltd on Tuesday said it has begun a tender offer to buy back bonds worth $650 million due next year. The bond repurchase programme by the Adani group firm will close on 24 July, a company statement said. Adani Ports is buying back the $1,000 bonds at $1,009.5 each.

    The company is also issuing new bonds of at least $650 million, proceeds of which will be used for the buyback of the bonds due in 2020.

    “The tender offer is conditioned on the issuance of the new notes in a principal amount of at least $650 million on terms and conditions satisfactory to the company," the statement added.

    On Tuesday, Fitch Ratings said it has assigned the port operator’s new bond issuance of $650 million an expected rating of ‘BBB-(EXP)’ with a stable outlook.

    “Historically, the issuer has experienced throughput resilience in economic cycles. Adani Ports has some flexibility in modifying tariffs and around 14% of its revenue in the financial year ended March 2019 (FY19) was associated with long-term revenue-guaranteed contracts. The company has spare capacity and can fund its large capex plan from operational cash flow. Its debt structure is corporate-like, with spread-out bullet maturities,’ the rating agency said in a note.

    The bond issuance and the bond repurchase programme follow last month’s $750-million offshore bond sale, which aimed to repay existing loans and finance capital expenditure.

    Adani Ports claims to be the country’s largest port developer and operator with a 21.2% share of port capacity.

    The company reported 18% rise in its debt to $3.9 billion in fiscal year 2019, compared with $3.3 billion a year ago, according to company data. The port operator’s profit remained almost flat at $579 million in FY19, compared to $573 million in FY18.

    Several other Indian firms had also tapped the offshore bond market this year, following tepid fundraising activity in 2018. Indian firms had raised $6.3 billion through dollar-denominated bonds, down 51.7% from 2019, shows Thomson Reuters data.

    For instance, GMR Hyderabad International Airport Ltd had raised $300 million through bonds in the offshore market to refinance debt of its parent, GMR Infrastructure Ltd.

    Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

    ABOUT THE AUTHOR
    Swaraj Singh Dhanjal
    " Based in Mumbai, Swaraj Singh Dhanjal is responsible for Mint’s corporate news coverage. For the past eight years he has been writing on the biggest deals in private equity, venture capital, IPO market and corporate mergers and acquisitions. An engineer and an MBA, he started his journalism career in 2014 with Mint. "
    Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
    More Less
    Published: 16 Jul 2019, 11:56 AM IST
    Next Story footLogo
    Recommended For You
    Switch to the Mint app for fast and personalized news - Get App

    Chat with MintGenie