This rating agency’s opinion on Adani Ports’ bond payment will restore investors’ confidence

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APSEZ Bonds Buyback: Adani Ports & Special Economic Zone, one of the flagship companies of the Adani Group, has prepared a plan to buy its bonds before maturity. Under this, the company is going to repurchase bonds worth $130 million every quarter. S&P Global Ratings believes that this move of the company can help in restoring investor confidence.

This strategy of the company will be strong

The global rating agency reacted on Tuesday to the bond buyback plan of Adani Ports (APSEZ). He said, this decision of Adani Ports shows that in view of the situation, the company is engaged in prepaying the maturing loan. The port and logistics company plans to repurchase bonds worth $130 million every quarter. If investors accept this deal, it will strengthen Adani Ports’ strategy to avoid refinancing risk.

The company gave this information

Let us tell you that Adani Ports and Special Economic Zone started the bond buyback program on Monday. This is the first bond repurchase program after the serious allegations of fraud leveled against the Adani group by American short seller firm Hindenburg Research in January this year. The company told the stock market on Monday that it has issued a tender for the buyback of bonds maturing in July 2024. Under this, it will repurchase bonds worth $ 130 million. The company has said that it will repurchase bonds of the same amount in the next four quarters as well.

activation of prepayment of loan

The rating agency said about this that in fact the company wants to restore 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 indicates that the company is actively engaged in managing the debt maturing in the future.

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Cash flow can remain so much

The rating agency has also expressed hope that Adani Ports has sufficient cash and is in a position to pay for bond buybacks worth $130 million. The agency said, the company is expected to have good operating cash flow and will utilize the same. We estimate that it will be Rs 89 billion in 2023-24.

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