New Delhi: GMR Power & Urban Infra Ltd on Monday said its step-down subsidiary, GMR Kamalanga Energy Ltd (GKEL), has successfully completed the refinancing of its entire ₹2,700-crore debt at significantly lower interest rates, strengthening the company’s financial profile.
In a regulatory filing, the company said GKEL has secured a senior loan facility of ₹2,700 crore to repay all existing lenders, bringing down its average cost of borrowing from about 12.15% per annum to 9.50% per annum. The interest rate could further reduce to 9.25% per annum, subject to a credit rating upgrade.
The refinancing is expected to result in estimated interest cost savings of ₹72–75 crore during the first full year of operations, providing a meaningful boost to profitability and cash flows.
“This refinancing marks a pivotal step in the company’s journey toward financial efficiency and sustainable growth,” GMR Power & Urban Infra said, adding that the lower borrowing costs will help enhance shareholder value over the medium term.
GKEL is a step-down subsidiary of GMR Power & Urban Infra, which operates in the power generation and urban infrastructure segments. The company said the refinancing aligns with its broader strategy to optimise capital structure and improve returns amid a challenging operating environment for the power sector.