JSW Hydro Energy funding

jsw hydro energy funding

JSW Hydro Energy has raised $707 million via its maiden international green bond sale that was oversubscribed by four times, merchant bankers stated on Monday.

The $707 million 10-year money was priced at 4.125 percent over the US treasury at closing, down from the original guidance of 4.50 percent, as the issue had a huge investor demand of four times the issue size, the merchant bankers told.

The company successfully raised $707 million in a green bond sale from international investors, according to merchant bankers.

The Regulation-S (Reg-S) bonds (which are denominated in US dollars and sold to non-resident American investors) was oversubscribed four times, encouraging the issuer to tighten the coupon from initial guidance of 4.5 percent to 4.125 percent over the US treasury at closing, Deutsche Bank India, which was the single lead book runner to and the green structuring agent of the issue.

Most of the subscribers are high-quality long-only investors, it further added.

Amrish Baliga, a managing director at Deutsche Bank India said, the great response to the issue, particularly in the prevailing environment, is evidence of the quality of the issuer and the trust that oversees investors continue to repose in high-quality Indian issuances.

He said the chief point to consider is that it arrives at a time when international portfolio investors are pulling out from the domestic fixed income market, making it a huge success. Over-subscription of four times in this situation is much higher than some issues even before the pandemic.

The company was looking to raise $750 million in 10-year senior secured green bonds but eventually chose to accumulate only $707 million, the bank stated.

Other merchant bankers include Standard Chartered Bank, JP Morgan, and Barclays India.

JSW Hydro Energy has an established generation capacity of 1,391 MW. The group collectively has 4,559 MW capacity, of which 3,158 MW are thermal power and 10 MW solar power.

It has operations across India and has stakes in natural resource organizations in South Africa.

JSW Hydro Energy is among the country’s leading power companies and looking at its trajectory, will grow even further. My best wishes to the team of JSW Hydro Energy.

Shishir Gupta, Founder and CEO, StartupLanes

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