Adani group gets ready to buy back $650 m debt

The Adani Group plans to utilise surplus cash and internal accruals to buy back foreign currency bonds of various group companies, starting with a $650-million tranche at Adani Ports and Special Economic Zone (APSEZ), according a report by The Economic Times.

The conglomerate is also evaluating bond buyback opportunities at other entities and is due to finalise a capital allocation plan. As per estimates, of the total debt of the Adani Group, foreign currency bonds constitute the highest exposure at 39 per cent, followed by term loans from foreign and Indian banks. APSEZ, in an exchange filing said that its board, at the meeting held on April 22, 2023, has approved a tender offer for its outstanding senior notes due 2024, in one or more tranches.

No fresh loans

In a presentation to lenders recently, Adani group said it would focus more of repaying loans and would not take any fresh loans unitl it brings down the current level of debt. Overall, the group is expected to report a 20% increase in its EBITDA at Rs 61,200 crore for the year 2022-23, Business Standard said in its report.

Air Works deal in trouble

The troubles for the Adani group don’t seem to be ending. Last year Adani Defence Systems and Technologies had signed an agreement to buy Air Works, an aviation maintenance, repair and overhaul company. But the deal seems to be hot water as Adani’s partner in the deal Punj Lloyd has gone into liquidation. The deal value for Air Works was Rs 400 crore. The “MoU deadline has expired as Air Works has been unable to find a solution to the problem where Punj Lloyd has gone into liquidation and the assets owned by it will be under a bank-driven process,” a person aware of the develpoment told The Economic Times.

It must be recalled that the Adani group shares have been under bear attack since January after Hindenburg released its report on Adani group.