Mumbai, Dec. 23 -- GMR Power and Urban Infra said GMR Kamalanga Energy (GKEL) has refinanced its outstanding debt of Rs 2,700 crore through a senior loan facility of the same amount. The refinancing enabled the repayment of all existing lenders.

Following the transaction, GKEL's average cost of borrowing has declined to about 9.50% per annum from around 12.15% earlier. The cost could further reduce to 9.25% per annum, subject to a credit rating upgrade.

The company estimates interest cost savings of about Rs 72-75 crore during the first full year after refinancing. Management said the reduction in borrowing costs is expected to improve profitability and support long-term financial sustainability.

GMR Power and Urban Infra is a global i...