Adani Energy Solutions’ arm Adani Electricity Mumbai has announced a tender offer to buy back a portion of its outstanding US$120 million senior secured bonds maturing in 2030.
“The distribution arm of Adani Energy Solutions Ltd, Adani Electricity Mumbai Limited, today announced a tender offer to repurchase up to USD 120 million of its outstanding 3.949% USD 1,000 million senior secured bonds due 2030,” a company statement said on Monday .
The tender offer is fully funded through its cash surplus and internal accruals and will help reduce the company’s leverage in line with the Adani portfolio companies to consistently improve financial matrices, it said.
The company will from time to time carry out similar market actions right up to the maturity of the bonds on market terms using the company’s available liquidity.
Such market actions will increase investor confidence and support to improve the current dislocation of the yield curve due to external parameters (including high interest rate environments), it said.
The buyback program will not only stabilize the interest rates on its outstanding bonds, but also provide a superior result – both for bond investors as well as shareholders.
Adani Electricity Mumbai is ranked as India’s No. 1 electricity utility according to the Ministry of Power’s 11th Annual Integrated Assessment and Ranking for Power Distribution (a report prepared by McKinsey & Company and Power Finance Corporation).
It serves over 12 million consumers and meets over 2,000 MW of power demand in Mumbai.
In line with its commitments to investors and its consumers, Adani Electricity said, it increased its share of power procurement from renewable sources to 30 percent from a baseline of 3 percent in 2019 and is committed to further increase it to 60 percent by the end of financial year 2027.
At the same time, it also reduced its greenhouse gas emission intensity by 38 percent from 2019.
Adani Electricity, part of the diversified Adani Group, is an integrated retail electricity distribution business. Adani Electricity owns and operates the largest and most efficient electricity distribution network in the country.
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