Adani Electricity Mumbai Ltd. announced a tender offer to buy back up to $120 million of its outstanding $1,000 million senior secured notes.
The distribution arm of Adani Energy Solutions Ltd. will buy back the outstanding 3.949% $1,000 million, senior secured notes that are due in 2030, which will be funded via internal accruals and cash surpluses, it said in its exchange filing on Monday.
The purpose of the buyback is to demonstrate strong financial stability and liquidity position, and it will help reduce the leverage of the company in line with the Adani portfolio companies, 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 and using the available liquidity, the statement said.
This will help in stabilising the current yields, which are distorted by volatile market conditions, and will also enhance investor confidence, it said.