Greenko raises $950 mn through bond offer

V. Rishi Kumar Hyderabad | Updated on July 23, 2019 Published on July 23, 2019

Greenko Group has raised $ 950 million through an international Green Bond offer which was subscribed by over three times from various global investors.

The renewable energy company, which operates more than 4.2 giga watts of generation capacity across wind, solar and hydel power, as an independent power producer, has about 7 GW of capacity under construction, which includes storage backed projects.

The company, which has majority shareholding by two sovereign funds GIC of Singapore and Abu Dhabi Investment Authorty, has recently concluded a $ 824 million rights issue where both the sovereign funds made their investments.

Mahesh Kolli, Greenko Joint Managing Director and President, told BuisinessLine, “We successfully raised $ 950 million through a bond offer with over three times oversubscription by global investors. This is the largest high yield bond from India this year and the largest Green bond offer from Asia and the process was completed in five days.”

Of the total offering, 40 per cent was raised from Asia, and about 25 per cent each from the US and Europe. The funds raised from the bond offer will be deployed for refinance of the debt of some of the projects, he said.

In a tough market environment, the company could raise nearly a billion dollar highlights the importance the renewable energy sector has gained lately. Thus far, Greenko has raised nearly $ 6 billion which was deployed into both organic growth and a string of acquisitions including that of bankrupt US company SunEdison.

Apart from both the sovereign funds, who have thus far invested over $ 2.2 billion in Greenko, Mahesh Kolli and Anil Chalamalasetty are the other major shareholders in the company, which is headquartered in Hyderabad.

The bond offer was rated by the Moody’s and JPMorgan, Deustshe Bank, CitiBank served as the bankers to the issue.

The company’s recent equity subscribed by GIC and ADIA is for two storage projects with a total capacity of 2.4 GW at Pinnapuram in Andhra Pradesh and Saundatti in Karnataka.

After making significant progress in wind and solar projects in particular, it is seeking to make inroads into the storage backed solar power which will enable power utilities to mitigate the intermittency issues of the renewable power.

India is also looking to promote a series of battery storage back up projects to ensure round the clock power supply from renewables.

Published on July 23, 2019
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