Business Update23 Dec 2025, 02:01 am
GMR Power Subsidiary Successfully Refinances Debt, Reduces Borrowing Cost to 9.50%
AI Summary
GMR Kamalanga Energy Limited, a step-down subsidiary of GMR Power and Urban Infra Limited, has successfully completed refinancing of its existing debt of Rs. 2700 Crore at a lower borrowing cost. The 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. The estimated savings in interest cost during the first full year of operations will be ~ ₹72-75 Crore.
Key Highlights
- GMR Kamalanga Energy Limited has successfully completed refinancing of its existing debt of Rs. 2700 Crore
- The refinancing has reduced GKEL's average cost of borrowing from ~ 12.15% p.a. to 9.50% p.a.
- There is a provision to further reduce the borrowing cost to 9.25% p.a. subject to a credit rating upgrade
- 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