According to reports, Hyderabad-based GreenKo Group plc, a leading independent clean energy power producer, has raised USD 550 million in a five-year overseas bond sale at a coupon rate of eight per cent at maturity.
This is the largest debt sale by a domestic firm with low or sub-investment grade ratings, and the seventh such issue this fiscal. In this connection, it may be recalled that Rolta had raised USD 300 million earlier this month, while IL&FS International Transportation Network had raised USD 90 million last month, according to investment bankers.
The money was raised by its international arm Greenko Dutch BV and is guaranteed by the parent. The instrument will be listed on the Singapore Stock Exchange, investment bankers said.
GreenKo Group Plc has a diversified portfolio of hydel and wind power plants with 700 mw operational capacity and has 300 mw under-construction projects.
Listed on the London AIM Exchange with a market capitalisation of USD 430 million, GreenKo Group Plc is based in the Isle of Man as well in Hyderabad.
Barclays India Managing Director and Head of Global Finance Rakesh Garg told PTI that this is the largest debut high yield bond offering ever priced for a domestic issuer and attributed its good pricing to receding risks as well as the resultant rising demand for low-grade debt instruments from the international market.
Deutsche Bank India Corporate Finance Head Amit Bordia said that the issue got a robust demand as the order book touched more than USD 1.4 billion, allowing the bond to be priced tighter by 50 basis points at eight per cent.