GMR Kamalanga Energy Ltd completes refinancing of debt of Rs. 2700 crores, lowers borrowing cost

GMR Kamalanga Energy Limited ("GKEL"), a step-down subsidiary of GMR Power and Urban Infra Limited ("Company"), has successfully completed refinancing of its existing debt of Rs. 2700 Crore at a lower borrowing cost.

Under the refinancing arrangement, GKEL has secured a senior loan facility of ₹2,700 crore, enabling the repayment of all existing lenders. This strategic refinancing has reduced GKEL's average cost of borrowing from ~ 12.15% p.a. to 9.50% p.a. with a provision to further reduce the same to 9.25% p.a. subject to a credit rating upgrade. Post refinancing, the estimated savings in interest cost during the first full year of operations will be ~ ₹72-75 Crore.

"This refinancing marks a pivotal step in the Company's journey toward financial efficiency and sustainable growth. The significant reduction in borrowing costs will strengthen profitability and enhance shareholders' value."

Source : Equity Bulls

Keywords

GMRPowerandUrbanInfra GMRKamalangaEnergy Refinancing Debt ReducedInterest