Adani Group’s bonds rise as a ‘key company’ begins debt buybacktext_fields
New Delhi: Adani Group’s bonds saw a rise after Adani Ports & Special Economic Zone Ltd started what Bloomberg reported on Monday the ‘first debt buyback’.
This is apparently an optimistic turn to the Conglomerate after it was battered by a short seller’s report in January.
Adani Ports & Special Economic Zone Ltd will buy back in each of the next four quarters ‘as much as $130 million of its July 2024 bonds’.
The move will showcase that its liquidity position is comfortable, a stock exchange filing by the firm reportedly said.
The value of Adani Group companies’ 10 out of 15 dollar-denominated notes rose in Hong Kong on Monday, the report said.
Marking the biggest jump in a month, there was a ‘0.69 cent on the dollar gain of Adani Ports' July 2024 3.375% senior debt’.
The buyback is part of the company’s efforts to ‘regain investor confidence’ alongside its moves to reduce capital spending.
Meanwhile BI analyst Denise Wong wrote that Adani Ports’ plans to repay 50 billion rupees of debt alongside halving capital spending will ‘alleviate refinancing concerns ahead of major maturities in 2024’.
US investment research firm Hindenburg Research came out with a report accusing Adani of ‘brazen stock manipulation and accounting fraud’ in January.