Adani Ports' Bold Move: Strategic Bond Buyback Amid Financial Success

Adani Ports and Special Economic Zone is considering a US dollar bond buyback due to robust cash flows and business growth. Scheduled to discuss the buyback proposal on May 31, 2025, the company reported a 19% EBITDA increase in FY25. This will potentially enhance its credit ratings.

Adani Ports and Special Economic Zone (APSEZ), part of the Adani Group, is contemplating a strategic US dollar bond buyback, leveraging its strong cash flows and growth trajectory.

The board plans to deliberate the proposal on May 31, 2025, according to a regulatory filing, as the company drowns in more cash flows than it can immediately use, said Karan Adani, the managing director. This influx of funds has driven the company's leverage ratio to lower levels.

For fiscal year 2025, APSEZ reported an impressive 19% increase in EBITDA, reaching Rs 20,471 crore. This financial leap, paired with sustained capital expenditures, positions the company as a frontrunner in infrastructure, earning an impressive 'AAA' rating domestically, with global ratings aligned to India's sovereign rating.

(With inputs from agencies.)