Adani Electricity Announces Cash Tender Offer To Buyback $120 Million Bonds

Adani Electricity meets over 2,000 MW of power demand with 99.99 per cent reliability, which is among the highest in the country

Adani Electricity Mumbai Limited, the distribution arm of Adani Energy Solutions Ltd, on Tuesday announced a tender offer to buyback up to $120 million of its outstanding 3.949 per cent $1,000 million senior secured notes due 2030, the company said in a statement. Adani Electricity, Mumbai’s primary and most preferred power utility, is ranked India's No. 1 power utility, as per the Ministry of Power's 11th Annual Integrated Rating and Ranking for Power Distribution (a report prepared by McKinsey & Company and Power Finance Corporation).

Adani Electricity Mumbai Ltd, part of Adani Group, is an integrated business of retail electricity distribution. It services over 12 million consumers and meets over 2,000 MW of power demand of Mumbai.

According to the release, Adani Electricity increased its share of power procurement from renewable sources to 30 per cent from a baseline of 3 per cent in 2019 and is committed to further increase it to 60 per cent by the end of fiscal 2027. At the same time, it also reduced its GHG emission intensity by 38 per cent from 2019.

The tender offer is being fully funded through its cash surplus and internal accruals and will help reduce the leverage of the company in line with the Adani portfolio companies to consistently improve financial matrices. The company will from time to time carry out similar market actions all the way to the maturity of the bonds subject to market conditions using the available liquidity of the company.

Such market action will enhance investor confidence and support in improving current dislocation of the yield curve due to external parameters (including high interest rate environment). The buyback programme will not only stabilise the yields of its outstanding bonds but also provide a superior outcome – both to bond investors as well as shareholders.

Adani Electricity owns and operates the largest and the most efficient power distribution network in India. Adani Electricity meets over 2,000 MW of power demand with 99.99 per cent reliability, which is among the highest in the country.