Adani Electricity to buy back $120 mn worth senior secured notes due in 2030
The buyback programme will not only stabilise the yields of its outstanding bonds but also provide a superior outcome
NEW DELHI: Adani Energy Solutions’ arm Adani Electricity Mumbai has announced a tender offer to buy part of its outstanding senior secured notes worth $120 million, which are due in 2030.
“The distribution arm of Adani Energy Solutions Ltd, Adani Electricity Mumbai Limited, today announced a tender offer to buyback up to $120 million of its outstanding 3.949% $1,000 million senior secured notes due 2030,” a company statement said.
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, it said.
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), it said.
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.
Meanwhile, Adani Energy Solutions, earlier known as Adani Transmission, is planning to raise $360 million (around Rs 3,000 crore) through issuing bonds on a private placement basis. “...we are looking for a private placement of $ 360 million of transmission assets which were commissioned in the last three to four years,” Rohit Soni, CFO, Adani Energy Solutions, said.