Adani Ports Bond Buyback Eases Refinancing Risk, Ensures Liquidity: S&P Global Ratings

The buyback of debt securities by Adani Ports and Special Economic Zone has eased refinancing risk and the company will have "adequate liquidity" over the next 12 months, according to S&P Global Ratings.

Adani Ports, a company of the Adani Group, yesterday announced it has started a buyback programme of certain debt securities to partly prepay near-term loans due in 2024.

Following the announcement, the US dollar-denominated bonds issued by Adani Ports rose on Monday.

"Adani Ports and Special Economic Zone will have adequate liquidity over the next 12 months and will remain flexible with capex (capital expenditure)," S&P Global Ratings said in a statement.

"The bond tender should reduce Adani Ports's debt ahead of the maturity of its $650 million 3.375 per cent senior unsecured notes in July 2024," the ratings agency said.

S&P said it expects Adani Ports to have sufficient cash balance to repay the notes.

Adani Ports in an exchange filing said it has floated a tender of up to $130 million in outstanding debt, as it tries to boost investor confidence after the group's shares were pummelled earlier this year by a US short seller's report.

The Adani Group has denied all allegations by Hindenburg Research as "nothing but a lie" and a "calculated attack" on India, its institutions and growth story.

Shares and bonds of Adani Group have regained some lost ground over the past month or so after it repaid some debt and attracted a $1.9 billion investment from boutique investment firm GQG Partners.