Mumbai: Greenko Group, one of India’s largest renewable energy producers, has started meeting investors for a proposed dollar bond sale, which could see the company raise up to $1 billion, said two people aware of the development.
Greenko, owned by sovereign wealth funds GIC of Singapore and Abu Dhabi's Abu Dhabi Investment Authority (ADIA), is looking to raise up to $750 million to $1 billion through the bond sale to refinance the debt of a part of its operational assets, said the first person cited above.
"Investor roadshows were started on Monday. The issue size is likely to be closer to $1 billion, depending on the demand," he added.
On Monday, rating agency Fitch assigned an expected rating of 'BB-(EXP)' to the proposed US dollar notes of Greenko.
"The rating of the proposed notes reflects the credit profile of a restricted group, which comprises 15 operating subsidiaries and the issuer that are all indirectly owned by Greenko. The restricted group has an operating capacity of 949MW in wind (85%) and solar (15%) power generation," the rating agency said in a note.
Greenko's total portfolio comprises operating assets of 4.2 gigawatts (GW) and under construction assets of 7 GW.
Greenko will use the proceeds from the proposed notes to refinance the project-level debt or acquisition borrowings of the operating subsidiaries, it added.
"All assets within the restricted group are operational. About 77% of the capacity started operations more than two years ago, with the rest operating for at least a year. However, higher reliance on more-volatile wind resource is a risk to cash flow estimates. The projects are diversified across seven Indian states, limiting regulatory risks," Fitch noted.
The proposed bond sale follows the recent equity infusion of $329 million into Greenko by GIC and ADIA, Mint reported on 12 July. This fresh tranche followed the $495 million investment in June last year.
The two sovereign funds have so far infused $2.2 billion in Greenko, which was founded by Mahesh Kolli and Anil Kumar Chalamalasetty.
A spokesperson for Greenko could not be immediately reached for a comment.