These bonds were issued in 2019 when APSEZ had raised $650 million through five-year bonds due for maturity in July 2024. After the US-based activist shortseller Hindenburg Research released an adverse report on Adani Group in January, the bonds fell to 86/88 cents on the dollar, and has since recovered to 97 cents, said a bond trader.
Adani Group’s move is aimed to bolster investor confidence in the company. APSEZ announced its buyback programme for its 3.375% 2024 maturity dollar-denominated bonds on April 24.
According to a filing with stock exchanges, an aggregate principal amount of $412.7 million in bonds was validly tendered. As the tendered amount exceeded the maximum acceptance amount of $130 million, APSEZ will accept the notes for purchase based on a proration factor of 34.2649%, the company said.
The Adani Group company shares experienced a significant decline following allegations made by Hindenburg Research on January 24. The report accused the group of accounting fraud and stock manipulation, which Adani Group has slammed, terming it as a ‘malicious combination of selective misinformation and stale, baseless and discredited allegations’.
To facilitate the offer, APSEZ enlisted the services of Barclays Bank, DBS Bank, Emirates NBD, First Abu Dhabi Bank, MUFG Securities Asia Singapore Branch, SMBC Nikko Securities (Hong Kong), and Standard Chartered Bank as dealer managers. Morrow Sodali was the information and tender agent for the offer.
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