The proceeds of this issue will be used to pay off the existing debt of the company and its subsidiaries
JSW Infrastructure Ltd. stated that it has successfully raised $400 million in 144A/Reg S Senior Secured Guaranteed Sustainability-Linked Bonds at 4.950% for a period of 7 years.
The proceeds of the issue will be used to repay the existing debt of the company and its subsidiaries and as permitted by RBI under ECB guidelines.
“This fundraise marks the company’s debut bond issue as well as the first Sustainability-Linked Bond (SLB) issue by an Indian port company,” the company said in a statement. This sustainability-linked bond issue is guided by the Sustainability-Linked Bond Framework of JSW Infrastructure which is affiliated to the International Capital Market Association (ICMA). The company said it has received a second-party opinion from DNV, describing the sustainability performance target as “ambitious” and beyond “considered business-as-usual”.
Arun Maheshwari, JMD & CEO, JSW Infrastructure said, [the bond issue] The coming years will help us restructure our capital structure and bring in greater funding efficiencies. The success of this issue reaffirms our stable business model with our renewed focus on sustainability-linked business strategy. “This bond issue will enable us to further diversify, strengthen our sources of funding and optimize our capital structure,” said Lalit Singhvi, Executive Director and CFO.
The deal received a strong response from investors globally, resulting in the order book reaching a peak of $1.35 billion, with the final order book exceeding $1.13 billion, the company said.
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