Companies

JSW Hydro Energy raises $707 million via maiden green bond

Our Bureau Mumbai | Updated on May 11, 2021

Priced at 4.125 per cent for a 10-year tenor

JSW Hydro Energy, which has the largest hydro power portfolio by capacity in the private sector in India, has raised $707 million through its maiden international bond issue.

The Fixed Rate Senior Secured Green 144A/Reg S Bond for a 10-year tenor was priced at 4.125 per cent.

The proceeds from the issuance will be used to repay existing green project-related rupee-denominated debt.

The company had engaged with several investors on a global deal roadshow in Hong Kong, Singapore, London, New York and Los Angeles.

The transaction was launched with an initial price guidance of 4.500 per cent and reduced to 4.125 per cent as final pricing.

The final order book was in excess of $2.6 billion with oversubscription of 3.7 times. The transaction saw 64 per cent participation from Asia, 14 per cent from the US and 22 per cent from EMEA (Europe, the Middle East and Africa).

Investment from long haul funds accounted for 82 per cent investment, 17 per cent from financial institutions (including Sovereign Wealth Funds) and one per cent from private banks.

Prashant Jain, Chairman, JSW Hydro, said the fund raise will enable the company to further strengthen and diversify sources of funding to grow renewable energy business.

About 30 per cent of the company's installed capacity of 4.6 GW is from renewable sources.

It has another 2.6 GW of renewable project in pipeline which are likely to get commissioned over the next 24-30 months. The renewable energy share share will go up to 55 per cent on completion of ongoing projects, said the company.

Published on May 11, 2021

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor