This strategic move is aimed at reducing the overall leverage of Adani Electricity Mumbai, aligning with the broader objective of Adani portfolio companies to consistently enhance financial metrics

Adani Electricity Mumbai , a subsidiary of Adani Energy Solutions, has revealed a offer to repurchase a portion of its  senior secured notes, amounting to USD 120 million, set to mature in 2030. The company’s official statement on Monday outlined its intention to buy back up to USD 120 million of its existing 3.949 per cent  USD 1,000 million senior secured notes due in 2030.

The financing for this  offered is entirely sourced from the company’s cash surplus and internal accruals. This strategic move is aimed at reducing the overall leverage of Adani Electricity Mumbai, aligning with the broader objective of Adani portfolio companies to consistently enhance financial metrics.

Adani Electricity Mumbai plans to conduct similar market actions periodically until the bonds mature, contingent on market conditions and utilising the company’s available liquidity. The company emphasises that these market actions will bolster investor confidence and address the prevailing yield curve dislocation influenced by external factors, including a high-interest rate environment.

Beyond stabilising yields on outstanding bonds, the buyback program is designed to deliver favorable outcomes for both bond investors and shareholders. Adani Electricity Mumbai, recognised as India’s top power utility according to the Ministry of Power’s 11 Annual Integrated Rating and Ranking for Power Distribution (a report developed by McKinsey & Company and Power Finance Corporation), caters to over 12 million consumers and fulfills a power demand exceeding 2,000 MW in Mumbai.

In line with its commitments to investors and consumers, Adani Electricity Mumbai has significantly increased its share of power procurement from renewable sources, rising from 3 per cent in 2019 to 30 per cent at present. The company aims to further elevate this figure to 60 per cent by the end of the fiscal year 2027. Simultaneously, it has reduced its greenhouse gas emission intensity by 38 per cent since 2019.