Mumbai: Adani Transmission is planning to buy back around $100 million of the short-dated US dollar denominated bonds, according to sources.
The company is in talks with some large global banks, including Standard Chartered, to fund the buyback, one of the sources said.
While Standard Chartered Bank could not be immediately reached for comment, an Adani spokesperson declined to comment on market speculation when asked about the buyback of the USD bonds.
On March 13, Fitch had affirmed the Adani Transmission-guaranteed 4% $500 million senior secured notes due 2026 and 4.25% $500 million senior secured notes due 2036 at ‘BBB-‘. The notes were transferred from ATL to Adani Transmission Step-One Limited, a wholly-owned subsidiary of ATL. The rating company had added that the impact of Hindenburg’s report accusing governance issues within the Adani Group on Adani Transmission’s funding access and cost of funding was expected to be manageable.
Recently, Adani Ports & Special Economic Zone announced buyback of $130 million of bonds maturing in July 2024. Last month ET had reported that Adani Group plans to buy back $650 million foreign currency bonds using surplus cash and internal accruals.
Adani Transmission’s $500 million 4% bond due 2026 has been indicated at 86/88 cents while the $500 million 4.25% bond due 2036 is trading at 70/74 cents, according to bond traders.
