Adani Ports prepays $130 million in debt to boost investor confidence

Adani Ports and Special Economic Zone (APSEZ) on Tuesday said it would prepay $130 million of its debt. The company has announced plans to prepay $413 million in debt. The move is expected to regain investor confidence. Adani shares were hit hard by a Hindenburg report aftershock.

The company last month announced a debt repurchase program to partially prepay short-term debt. The company last month made an offer for up to $130 million for 3.375 percent US dollar-denominated bonds maturing in 2024.

APSEZ: A key official of the Indian government

In a statement shared by the company, the Adani Ports and Special Economic Zone (APSEZ) said: “APSEZ’s contribution to government revenue has increased significantly in recent years. In FY21, customs revenue from cargo shipped through the company’s ports and inland container depots was 41,110 crore. This figure rose to Rs. 60,945 crore in FY22 and reached Rs. 80,732 crore in the year just ended. The steady growth in customs revenue underscores the company’s growing role in India’s maritime transport sector and its ability to generate significant revenue for the government. In addition, APSEZ has also made significant rail freight payments to Indian Railways. Over the past two years, the company’s rail freight payments have more than doubled, reaching Rs. 14,034 crore in FY23. In FY21 APSEZ made payments of Rs.5,927 Cr to Indian Railways which increased to Rs.8,573 Cr in FY22. The increase in rail freight payments not only supports Indian Railways but also contributes to the overall infrastructure development of the country.”

It adds: “In FY23 the company’s payments on this front totaled Rs.906 crore, a 1.5-fold increase compared to the amount of Rs.622 paid in FY21. In FY22, that figure was Rs. 807 crore.” The growth in the company’s cargo handling capacity also plays a role in its contribution to government revenue. In FY23, APSEZ handled 339 million tons of cargo, up 8.6 percent year-on-year and up 37 percent compared to FY21. APSEZ has also steadily increased the number of ships handled, which has increased from 6485 in FY21 to 8538 in FY23. In addition, APSEZ has paid almost Rs.33 crore as land lease fees to the respective maritime authorities in FY23, compared to Rs.26 crore in FY21.”

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