Renewable energy company Greenko plans to raise $500 mn to rejig debt – EQ Mag Pro
The actual fundraising is dependent on market sentiments amid an escalation of the Russia-Ukraine conflict, which had increased volatility
Renewable energy company Greenko is planning to raise around $500 million from the international market for refinancing existing debt and capital expenditure.
Merchant banking sources said the company had expressed intent on raising funds. Besides it, Adani group entity Mumbai International Airport is also in the market for money to replace bridge loans and capex.
The actual fundraising is dependent on market sentiments amid an escalation of the Russia-Ukraine conflict, which had increased volatility, they added.
Greenko is one of India’s leading renewable energy companies, with an operating capacity of 5.2 Gw diversified across wind, solar, and hydro generation across 14 states.
Last week, Fitch Ratings had revised the Outlook on Greenko Energy Holdings’ (Greenko) Long-Term Foreign-Currency Issuer Default Rating to from “stable” to “negative” and affirmed the rating at ‘BB’.
The Outlook revision to Negative reflected a sharp increase in Greenko’s trade receivables over the last two years. There is also lack of clarity about the timing and quantum of improvement in the receivables.
Greenko’s receivables are expected to remain high at above $ 700 million in the financial year ending March 2023 (FY23). However, wind-based generation is expected to return to average historical levels after the dip in FY21 due to a much weaker wind season, in line with other Indian wind projects, Fitch said.
The group’s receivables rose to $ 709 million by the end of December 2021 (FYE21: $566 million) due to continued payment delays by state utilities following slow disbursements from the central government’s liquidity support package.
Greenko’s ‘BB’ rating is underpinned by the group’s diversified portfolio of 138 renewable-power assets, which have 5.2 Gw of capacity in operation. The capacity is sold under long-term power purchase agreements (PPAs) that provide fixed tariffs and stable volumes.
The rating also factors in Greenko’s strong access to funding and liquidity support due to strong shareholders, which include GIC – Singapore’s sovereign wealth fund; Abu Dhabi Investment Authority (ADIA), and ORIX Corporation. GIC, in particular, has provided consistent equity support for Greenko’s investments.
Source: business-standard
