With $1.9 billion in foreign currency bonds maturing next year, the Adani Group is planning to meet repayments through a combination of cash payments and new bond sales. Through regulatory filings, the firm informed investors that it is working to establish a liquidity pool of cash and cash equivalents to repay $750 million of Adani Green's holding company bonds issued in 2019 and due to mature in September of the following year. The business has also committed to paying in cash a $650 million bond tranche of Adani Ports and Special Economic Zones (APSEZ) due in July, of which $325 million has already been paid in cash this year.
The group has began discussions with lenders to raise $410 million to refinance Adani Green's $500 million bond tranche, which is due to mature in May. According to sources, while the Adani group did not react to demands for comment, the group has began conversations with possible investors to raise long-term investment that may last up to 20 years in some cases.
"The group feels that investors' confidence in the group has improved considerably in the past few months given the robust performances of the issuing companies and, therefore, refinancing the outstanding bonds will not be a problem," a person with knowledge of the discussions told Moneycontrol.
Bloomberg figures show that the conglomerate's subsidiaries now have around $7.5 billion in outstanding bonds. According to analysts, refinancing is often easier in cash-flow-generating operating companies than in holding companies, and this could be the Adani group's repayment approach.
The group recently informed investors that it will fully redeem the bonds offered by Adani Greens' holding company, utilising a $675 million funding letter provided by the bond's underwriters.
APSEZ announced plans on Tuesday to finance Rs 5,000 crore through the issuance of non-convertible debentures and an additional Rs 250 crore through the sale of non-cumulative redeemable preference shares. The company runs 13 ports and terminals across India, including the largest container handling port in Gujarat, Mundra, and has stated that a considerable amount of the funds collected will be used to refinance current debt.
Bloomberg reported on December 10 that a recent recovery has wiped losses on a series of Adani group dollar bonds. These bonds fell in value after US-based short seller Hindenburg Research accused them of fraud. Furthermore, the business has received a $553 million loan from the International Development Finance Corporation for the construction of a container terminal in Sri Lanka.
