Hyderabad: Wind power producer Mytrah Energy (India) Ltd on Thursday has raised 430 crore (about $70 million) from Merill Lynch International and funds managed by affiliates of Apollo Global Management LLC.

The company has the option to raise an additional 170 crore (about $28 million) that will take the total amount raised to 600 crore ($98 million), it said in a statement.

Of the 430 crore raised, 90 crore will be used to refinance debt raised (in the form of mezzanine financing) from IDFC Ltd. The rest of the amount would be used to develop new wind power projects. The company aims to build a wind power portfolio of 1,000 megawatt (MW).

The mezzanine funding extended by IDFC expires in August 2015 but Mytrah decided to repay the amount ahead of time, Vikram Kailas, Mytrah’s managing director said in a phone interview.

The latest round of funding has taken a form of a bond that is expected to be listed on BSE, the company said. Vikram Kailas said the bond will be listed on the FII (foreign institution investor) debt segment of the BSE.

Mytrah’s parent, Mytrah Energy Ltd, is listed on AIM, the secondary market of the London Stock Exchange.

“The confidence shown in us by Bank of America Merrill Lynch and Apollo is powerful validation of our business model," Ravi Kailas, chairman and chief exeuctive of Mytrah Energy said in the statement. “With a long pipeline of wind projects in place, we are delighted to have secured the support of investors with whom we can build a long standing and fruitful relationship."

The company has an operating portfolio of over 542 MW across six states—Andhra Pradesh, Tamil Nadu Karnataka, Maharashtra, Gujarat and Rajasthan.

“With this funding we are fully covered for (taking the capacity to) 1,000 MW," Vikram Kailas said. He refused to specify when the company would reach the 1,000 MW mark but said it was on track to meeting an earlier target of producing 1,500 MW by 2016.

IDFC’s private equity arm, IDFC Alternatives Ltd, had earlier invested 350 crore in Mytrah Energy (India). Its UK-based parent raised $80 million from institutional investors, Capital Group, BlackRock Inc. and Henderson Global Investors Ltd when it listed on AIM in 2010. The company has a debt of 2,000 crore on its books, according to Vikram Kailas, raised from 28 banks and financial institutions.

Mytrah procures equipment from domestic and international vendors, and builds wind power projects through a combination of turnkey and in-house project development. The power generated from its wind mills is typically sold to state governments. However, in the case of one project in Tamil Nadu, it will sell 100.5 MW directly to customers based on long-term agreements.