Global investors have largely chosen to retain Adani Group’s dollar bonds despite heightened volatility in international markets triggered by the West Asia crisis, with bondholders showing limited interest in a recent buyback by Adani Ports and Special Economic Zone Ltd (APSEZ).
On March 12, APSEZ, India’s largest private port operator, completed a cash tender offer to repurchase portions of two series of US dollar-denominated senior notes, reducing its outstanding debt by about USD 199.5 million, people with direct knowledge of the matter said.
The offer covered up to USD 345.1 million of 4 per cent notes due in 2027 and USD 150 million of 3.10 per cent notes due in 2031, indicating a potential buyback of nearly USD 495 million.
However, bondholders tendered far less than the offered amount. APSEZ ultimately accepted USD 102.1 million of the 2027 notes and USD 97.5 million of the 2031 notes, they said.
As a result, more than 60 per cent of investors opted to retain their holdings rather than exit through the tender offer.
After the early tender deadline, investors submitted an additional USD 0.5 million of the 2027 notes and USD 2.13 million of the 2031 notes, taking the total repurchased amount to USD 199.5 million, they said.
The buyback is part of APSEZ’s broader strategy to deploy surplus cash and gradually lower leverage. In recent years, the company has relied on refinancing and selective repurchases to reshape its debt profile while maintaining access to global capital markets.
"We were expecting more investors to tender their shares, but the response has been quite positive," said one of the persons involved in the transaction.
Investors’ relatively low participation in the tender indicates continued demand for the group’s debt, particularly among global funds seeking exposure to India’s infrastructure growth.
According to people familiar with the matter, some US-based institutional investors have also been adding to their holdings of Adani-linked bonds in the secondary market.
Settlement for the notes accepted after the early tender date is expected around March 16.
For APSEZ, the repurchase provides a modest reduction in debt while highlighting its liquidity strength. For investors, the decision to hold on to the bonds reflects sustained confidence in one of India’s largest privately-owned infrastructure groups.