JSW Hydro Energy Ltd, a wholly-owned subsidiary of JSW Energy, has raised $707 million or Rs 5,187 crore by issuing its first fixed-rate senior secured green bonds priced at 4.125% per annum. The bond with a ten-year tenure was oversubscribed more than 3.7 times.
The proceeds from the bond sale will be utilised to repay the existing green project-related rupee-denominated loans, the company said.
The company held global roadshows across Hong Kong, Singapore, London, New York and Los Angeles. The transaction saw 64% participation from Asia, 14% from the US and 22% from EMEA with 82% investment from long haul funds, 17% from financial institutions (including Sovereign Wealth Funds), and 1% from private banks. There was strong demand from some of the largest marquee fixed income investors globally, the company said.
Prashant Jain, chairman of JSW Hydro, and joint managing director & CEO of JSW Energy said: “The fundraiser will help the company further strengthen and diversify its sources of funding as it builds and grows the renewable energy portfolio.
From a total installed capacity of about 4.6 GW today, where about 30% is from renewable sources, we currently have visibility on a pipeline of about 2.6 GW of renewable projects comprising of wind, solar and hydro which are likely to get commissioned over the next 24 – 30 months. On completion of these projects, the share of renewables in our portfolio will be over 55%.”