“Adani Electricity Mumbai’s Strategic Move: USD 120 Million Bond Buyback Revealed!”

Adani Electricity Mumbai, a subsidiary of Adani Energy Solutions, has announced a tender offer to repurchase a portion of its outstanding senior secured notes valued at USD 120 million, set to mature in 2030.

As stated in a Monday press release, Adani Electricity Mumbai Limited, the distribution arm of Adani Energy Solutions Ltd, has initiated a tender offer to buy back up to USD 120 million of its outstanding 3.949% USD 1,000 million senior secured notes due in 2030.

The entire funding for this tender offer will be sourced from the company’s cash surplus and internal accruals. This strategic move aims to reduce the company’s leverage, aligning it with the financial improvement objectives of Adani portfolio companies.

The company intends to conduct similar market actions periodically until the bonds mature, depending on prevailing market conditions and utilizing the available liquidity.

This market action is expected to boost investor confidence and address the current dislocation of the yield curve due to external factors, including a high-interest rate environment.

The buyback program not only seeks to stabilize the yields of outstanding bonds but also aims to provide superior outcomes for both bond investors and shareholders.

Adani Electricity Mumbai holds the top position in India’s power utility sector, according to the Ministry of Power’s 11th Annual Integrated Rating and Ranking for Power Distribution, as prepared by McKinsey & Company and Power Finance Corporation. With a consumer base exceeding 12 million, the company caters to a power demand of over 2,000 MW in Mumbai.

In line with its commitments to investors and consumers, Adani Electricity has increased its share of power procurement from renewable sources from 3% in 2019 to 30% and aims to further elevate it to 60% by the end of fiscal 2027. Simultaneously, the company has reduced its greenhouse gas emission intensity by 38% since 2019.

Adani Electricity, an integral part of the diversified Adani Group, operates as an integrated business in retail electricity distribution and owns and operates the country’s largest and most efficient power distribution network.