This is the first such fundraising by an Indian company in the aftermath of the Russia-Ukraine turmoil and could well mark a revival of global bond sales by local borrowers amid signs of receding tension.
Earlier, several Indian companies either cancelled or postponed their offshore bond sales as international investors went into a risk-off mode seeking the safety of dollar-backed assets. Individual investors and Greenko could not be contacted immediately. The deal was still on at the time of writing this article.
Those high-yield bonds will mature in three years unless the borrower exercises a call option in 2024, a route to extinguish an existing debt. They were initially priced at 5.8%. Due to higher subscriptions flowing in, the rate tightened by 30 bps to 5.5%. The proposed notes will be “unconditionally and irrevocably” guaranteed by GWPM’s ultimate holding entity, Greenko Energy Holdings (GEH).
Deutsche, JP Morgan, Barclays and DBS Bank helped the company raise the funds. The proceeds will be used both for repayment and capex purposes.
“This was the first financing for a pump hydro storage project from India in the international debt capital market,” said Sameer Gupta, head-debt capital markets at Deutsche Bank India. “With this India’s high-yield market reopened after a hiatus.”
Global rating company Moody’s Investors Service assigned a Ba1 rating, ranked in the high-yield category, to the bonds, which will be sold by GWPM, a financing vehicle for GEH, which operates the first integrated renewable energy storage project, through its subsidiary Greenko AP01 IREP Pvt Ltd (Greenko AP01).
Part of it will be used to repay an existing rupee loan taken by Greenko AP01. The rest will add building capacity to the Pinnapuram standalone pumped storage project.
Bonds may be listed on the Singapore Stock Exchange.
GEH’s rating, according to Moody’s reflects its diverse portfolio of operating renewable energy assets backed by long-term contracts, track record and large operating scale.