GIC-backed Greenko Energy raises $940m through latest bond issue
Green energy Holdings has raised $940 million for refinancing through its latest bond issue that closed on Monday, with the demand for Moody’s Investors Service’ Ba1 rated bond being over $2.5 billion.
“At 3.85%, this is the lowest priced and largest bond in non-investment grade by any corporate from India,” said a person aware of the development requesting anonymity.
While GIC Holdings Pte. Ltd and Abu Dhabi Investment Authority (ADIA) currently hold 56% and 14%, respectively, in Greenko, Japan’s financial services firm ORIX Corp. has a 17.5% stake. Greenko founders and president and joint managing director Mahesh Kolli and chief executive and managing director Anil Kumar Chalamalasetty own the remaining stake.
Mahesh Kolli declined comment on the bond raise issue. The bankers for the bond issue were JP Morgan, Deutsche Bank and Barclays Bank. Greenko posted a revenue of $661 million for the year ended 31 March 2020.
Including the latest bond raise, Greenko has raised $4.44 billion from dollar bond and Rs750 million from the Indian
market till now through the bond route.
Recently, ORIX Corp. concluded a deal for the investment of $980 million in Greenko, marking the single largest foreign investment transaction in India’s clean energy space.
The ORIX deal, announced last September, pegged Greenko’s equity and enterprise value at $5.75 billion and $10.2 billion respectively.
With an operational portfolio to 7.3 giga watt (GW), Greenko has India’s largest operational clean energy portfolio. India has set a target of achieving a 450GW renewable energy capacity by 2030.
It currently has an installed renewable energy capacity of 89.63GW, with 49.59GW capacity under execution.
Greenko is also building power storage projects with total capacity of 8 GW across six states in India as part of its plan to provide on-demand power from wind and solar projects and is also partnering with state-run NTPC Ltd to develop “round-the-clock” power supply.
India’s green energy deal pace has been witnessing significant traction, given marquee deals such as Goldman Sachs-backed ReNew Power’s proposed merger with Nasdaq-listed special purpose acquisition company (SPAC) RMG Acquisition Corp. II (RMG II), at an enterprise value of around $8 billion.
There are also a number of wind energy deals in play as reported by Mint including state-run hydropower generator SJVN Ltd outbidding NTPC Ltd to emerge as the preferred bidder for PTC India Ltd’s 288-MW wind power assets spread across Madhya Pradesh, Karnataka, and Andhra Pradesh.
Also, with 1.7GW of wind capacity, Hyderabad-based Mytrah Energy India Pvt. Ltd is exploring a merger with other green energy firms in India to create a bigger entity ahead of a US listing plan through the SPAC route option.
India’s largest pure-play solar platform Acme Solar Holdings Ltd is also exploring a US listing through the SPAC route.
Source: dealstreetasia
