Adani Ports and Special Economic Zone’s decision to repurchase bonds worth $130 million indicates that the company is already proactively managing debt maturing in the coming times in view of the situation. S&P Global Ratings said this on Tuesday.
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It is noteworthy that Adani Ports and Special Economic Zone (AP-SEZ) started the bond buyback program on Monday. This is the first bond buyback program after the US financial research and investment company accused Adani Group of fraud in January. However, Adani Group dismissed the allegation as baseless.
The rating agency said, “The Indian port and logistics company plans to buy back bonds worth $130 million every quarter.” The strategy will be strong.
The company said in a notice to the stock market that it has issued a tender for the buyback of bonds maturing in July 2024. Under this, it will repurchase bonds worth $ 130 million. Will repurchase the same amount in the next four quarters as well.
In fact, the company wants to re-establish confidence among investors that its cash position is satisfactory. S&P Global Ratings said, “We believe that this is a step taken according to the situation.” This shows that the company is already actively engaged in managing the debt maturing in the coming times.
According to the rating agency, it expects Adani Ports to have sufficient cash and is in a position to pay for bond repurchases worth $130 million. He said, “The company’s operating cash flow is estimated to be good and it will use it.” We estimate that it will be Rs 89 billion in 2023-24.
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