Adani Ports will buyback its $195 million bond, will repay the loan ahead of time

Adani Group's Adani Ports and Special Economic Zone (APSEZ) will repay its loan ahead of schedule. APSEG said the company will soon repay its US$195 million loan due in 2024, which will boost investor confidence after the Hindenburg report.

In a stock exchange filing, APSEZ said the company will use its cash reserves to buy back US$195 million of bonds due in 2024. The company said that out of the original outstanding of US$520 million, US$325 million will remain after the buyback.

In May this year also, the company bought back the July 2024 bonds for a total of US $ 130 million of the principal amount in cash and had said that it would buy back 20 percent of the principal amount of the bonds in each of the next four quarters.

In its second tranche, the company is now proposing to buy bonds worth up to US $ 195 million. This is 30 percent of the principal amount of the bond (US$650 million).

Following a US$130 million buyback in May, US$520 million remains outstanding. The company said in the filing that the buyback tender is open till October 26.

This step of Adani Group is to win back the trust of investors. Earlier in the year, US firm Hindenburg Research had accused Adani Group of fraud and improper use of offshore tax havens for stock manipulation.

After the allegations, all 10 shares of Adani Group saw a decline. However, Adani Group had rejected these allegations as baseless. To regain the lost confidence of investors, Adani Group will repay the loan ahead of time.