Adani Ports bond repurchase offer oversubscribed with bids worth $413 million
- Investors who tendered their bonds on or before the early tender date will receive $970 per $1,000 principal amount, plus accrued interest
Adani Group's ports and logistics arm Adani Ports, on Tuesday, said its recent offer to repurchase $130 million worth of the company's bonds received tender offer worth $412.7 million from bondholders. The 3.375% coupon bonds are due in 2024. The higher tender offer against the targeted repurchase amount of $130 million indicates that the company's bondholders are in a rush to sell off their fixed-income holdings in the company. The "early" tender date for the offer expired on 8 May, 2023, according to an exchange filing.
Investors who tendered their bonds on or before the early tender date will receive $970 per $1,000 principal amount, plus accrued interest.
The company will accept the additional bonds tendered, subject to the proration factor of 34.2649%, said the company.
Any bonds not accepted for purchase will remain outstanding and continue to accrue interest. The early settlement date is expected to be 10 May, 2023.
“According to the information provided by Morrow Sodali Ltd (the “Information and Tender Agent”), the information and tender agent for the Tender Offer , an aggregate principal amount of $412,724,000 of the Notes had been validly tendered and not validly withdrawn pursuant to the Tender Offer as at the Early Tender Date,” said the company.
Adani Ports had announced a buy-back of up to $130 million of the company’s outstanding bonds in an attempt to comfort investors and creditors about the group’s liquidity position that came into question after a scathing report by US-based short-seller Hindenburg Research on 24 January.
This was the first ever buyback of bonds by Adani Ports and it assumes significance in the backdrop of a widespread concern among investors about the group’s liquidity position after the Hindenburg Research report.
Adani group’s total debt stands at around ₹2.27 trillion as on 31 March and gross assets stood at ₹3.91 trillion.
Adani Ports’ market capitalization stood at ₹149,438 crore. The stock's 52-week high was ₹987.9, and the 52-week low was ₹394.95. The company trading 0.98% higher at ₹691.9 apiece on the BSE on Tuesday.
On 18 April, Mint reported that Adani, during the just-concluded March quarter, paid $3 billion to release promoter pledges in group firms and repay bonds. The Adani group has significantly lowered its promoter-group pledges and settled bonds with three domestic mutual funds by using the proceeds from the $1.88 billion equity funding by GQG Partners and an additional $1 billion from promoter-group funding.
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