GreenCo raises $750 million through offshore bond offering

The three-year US dollar denominated bond was priced at 5.50%. Deutsche Bank advised the company.

“It was the first international green bond issue to finance an energy storage project in India. Deutsche Bank MD and Head India DCM Sameer Gupta said the successful fund raising is a testimony to Greenko Group’s strong credit quality and their strong track record in international debt capital markets.

On Monday, Fitch Ratings assigned ‘BB’ rating to senior US dollar notes of Greenco Wind Projects (Mauritius) Ltd (GWPML), an indirect subsidiary of Greenco Energy Holdings.

“GWPML will lend the proceeds of the US dollar bonds to Andhra Pradesh (AP) Pump-Storage Project SPV – Pinnapuram SPSP Company – by investing in the SPV’s rupee-denominated debt. Pinnapuram SPSP Company will use the proceeds to refinance its existing borrowings. , create an interest service reserve account and fund the remaining capital expenditure for the AP pump-storage project. GWPML does not hold equity in the project SPV, which Greenco holds,” Deitch said.

“Greenco’s ‘BB’ rating is underpinned by the Group’s diversified portfolio of 5.2GW of renewable-energy assets. Capacity is sold under long-term power purchase agreements (PPAs) that provide fixed tariffs and stable amounts in ratings. GreenCo’s strong also includes access to funding and liquidity support due to strong shareholders including GIC, Sovereign Wealth Fund of Singapore, Abu Dhabi Investment Authority (ADIA) and Oryx Corporation (A-/Stable), the rating agency said.