Adani Electricity launches $120m bond buyback to bolster financial stability

Adani Electricity Mumbai Limited, a leading power utility under Adani Energy Solutions Ltd, has launched a tender offer to buyback up to USD 120 million of its outstanding 3.949% USD 1,000 million senior secured notes due 2030. The move aims to stabilize current yields affected by volatile market conditions and boost investor confidence. The buyback, funded through internal accruals and cash surplus, reflects the company’s strong financial stability and liquidity position.

Ranked India’s No. 1 power utility by the Ministry of Power, Adani Electricity serves over 12 million consumers and meets over 2,000 MW of Mumbai’s power demand. The company has increased its renewable energy procurement to 30% from 3% in 2019, aiming to reach 60% by fiscal 2027. Additionally, it has achieved a 38% reduction in greenhouse gas (GHG) emission intensity since 2019.

The tender offer, aligned with Adani’s commitment to improving financial matrices, will reduce the company’s leverage and is part of ongoing efforts to carry out similar market actions until the bonds’ maturity. The buyback program aims to stabilize bond yields and provide superior outcomes for both bond investors and shareholders.

Adani Electricity, part of the Adani Group, operates the largest and most efficient power distribution network in India. Covering 400 sq km in Mumbai and its suburbs, the company boasts 99.99% reliability, among the highest in the country.