Adani Energy Electrifies Financial Strategy with $49.5 Million Buyback

Adani Electricity Mumbai Ltd repurchased USD 49.5 million in senior secured notes, reducing its debt to USD 830.5 million. Funded by internal cash flows, this transaction is part of a strategic effort to minimize debt obligations and showcases the company's financial flexibility and robust cash-generation capabilities.

Adani Energy Solutions announced on Monday that Adani Electricity Mumbai Ltd (AEML) has successfully repurchased senior secured notes valued at USD 49.5 million from the open market. This move is aimed at decreasing its debt obligations.

The transaction involves part of AEML's USD 1,000-million senior secured notes initially issued in February 2020, with a maturity in 2030. Funded through internal cash flows, this buyback contributes to the outstanding principal being reduced to USD 830.5 million.

AEML had previously repurchased USD 120 million of these bonds in November 2023. The company expressed that these transactions illustrate its financial flexibility and strong cash-generation capabilities, indicating potential for future liability management based on market conditions.

(With inputs from agencies.)