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Mytrah Energy Ltd, an independent power producer focussing on wind power generation projects, has raised $60 million of new capital in the form of a non-convertible debenture.
Together with the cash flow from its existing 543 MW operating portfolio and the recently concluded $70-million financing, this new capital provides all of the equity required to take Mytrah Energy’s generating capacity beyond 1000 MW.
The new capital has been provided by Merrill Lynch International and Aion Direct Singapore Pte Ltd.
“In four years, thanks to the support from our enthusiastic partners and an entrepreneurial team, our business has grown from an idea to 543 MW of operating capacity, with a future project pipeline of 3500 MW. This new capital provides the equity we need to take our capacity beyond 1000 MW,” Ravi Kailas, Chairman & CEO, Mytrah Energy Ltd, said in a statement.
As announced in November 2014, the NCD is a long-term five-year instrument with a cash coupon of 12 per cent per annum. The new capital represents the exercise of the $28-million “greenshoe” option, plus a $32-million extension. The proceeds from this issue will be used primarily to refinance part of the existing mezzanine facilities of Rs 110 crore and the balance for development of new wind power projects from the company’s pipeline.
As part of the $32-million extension to the NCD, the company has issued additional warrants giving NCD investors the option to purchase 2,827,350 shares in Mytrah Energy Ltd at a strike price of $1.2 per ordinary share. These warrants represent 1.5 per cent of the company’s issued share capital post exercise, and can be exercised at any time during the five-year lifetime of the NCD.
Post this development, the total warrants in issue under this structure comes to 6.5 per cent of the company’s issued share capital.
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